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| a situation in which there is minimal government interference with the workings of the market system. |
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| An activity that causes incidental benefits or damages to others not directly involved in the activity |
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| the sum of an activity’s Marginal private benefit plus its incidental benefits that are received by others |
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| the sum if its marginal private cost plus its incidental costs that are borne by others who receive no compensation for the damage |
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Definition
| the share of an activity’s marginal benefit that is received by the persons who carry out the activity |
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| the share of an activity’s marginal cost that is paid for by the persons who carry out the activity |
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Definition
| goods and services that are available on an individual basis |
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Definition
| those whose benefit the enterprise is supposed to serve |
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Definition
| the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay |
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| goods and services not allowed on an individual basis |
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| people hired to run a complex enterprise on behalf of the principals |
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Definition
| the tendency of the costs and prices of these services to rise persistently faster than those of the average output in the economy |
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Definition
| the difference between the market price of the item sold and the lowest price at which the supplier would be willing to provide the item |
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Definition
| A commodity has excludability if someone who does not pay for it can be kept from enjoying it |
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Term
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Definition
| refers to the tendency of insurance to discourage policy holders from protecting themselves from risk |
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