Term
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Definition
| Measures the benefit buyers receive from participating in a market |
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Term
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Definition
| Deriver from the willingness to pay of the possible buyers |
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Term
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Definition
Amount a buyer is willing to pay for a good-amount buyer actually pays for it
WILLINGNESS TO PY MINUS PRICE PAID |
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Term
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Definition
Amount a seller is paid for a good- the seller's cost of providing it
PRICE RECIEVED-WILLINGNESS TO SELL |
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Term
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Definition
| Reflects the cost the cost of supplier |
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Term
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Definition
| Reflects the benefit of buyers |
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Term
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Definition
| Consumer surplus+ Producer Surplus |
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Term
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Definition
| Valus to buyers- Cost to sellers |
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Term
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Definition
| Maximizing the total surplus received by all members of society |
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Term
| Which way does a tax on a good levied on buyers shift |
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Definition
| demand curve shifts leftward |
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Term
| Which way does a tax on a good levied on sellers shift? |
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Definition
| Supply curve shifts leftward |
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Term
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Definition
| Price of a good that prevails in the world market for that good |
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Term
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Definition
| Opportunity cost of the good on the domestic market |
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Term
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Definition
| Tax on goods produced abroad and sol domestically |
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Term
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Definition
| Domestic price= World Price |
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Term
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Definition
| Raises domestic price above world price |
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Term
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Definition
| uncompensated impact of impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| Impact on population is bad |
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Term
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Definition
| Impact on population is beneficial |
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Term
| Corrective Taxes (Pigovian Taxes) |
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Definition
| Influencing private decision makers to think about social cost that rise from negative externality |
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Term
| Name 4 benefits from Corrective Taxes/subsidies |
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Definition
1. Places price on the right to pollute
2. Reduce pollution at a lower cost to society
3. Raise revenue for movement
4. Boost economic efficiency |
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