Private goods
command-and-control approach
governments should develop fair, efficient tax policies to redistribute resources and provide public services to the population
negative
BADs that occur outside markets are called ___ externalities
offender complainer
Coase asked, what if we assign the property right to the ____ and not to the ____
secondary market in property rights
Coase showed that a ______ will allocate the solution that costs least, rather than the "command-and-control" method of Pigou.
positive
GOODs that occur outside markets are called ___ externalities
subsidizes
government ____ private goods that provide positive externalities
market environmentalism
____ is now the law
coase
____ questioned the very way we think about externalities
1) rival 2) non-excludable
a common property resource has two aspects of demand:
rationed by licenses
a common property resource must be ______ or else it will be exhausted
1) non-rival 2) excludable
a mixed good (club) has two aspects of demand:
both
a mixed good has aspects of
that's not fair
a person is trying to lift money out of your pocket when they tell you
private markets
a private good is most efficiently provided by
collective action
a public good is most efficiently provided by
1) Rival 2) excludable
a pure private good has two aspects of demand:
1) Non-rival 2) non-excludable
a pure public good has two aspects of demand:
no
are all goods private goods?
externalities or spillover effects
events that occur outside the primary good's market are called
excuse
externalities have long been used as an ____ for private individuals to line their pockets at others' expense
zero or small
if transactions costs are _____, then the initial assignment of property rights does not affect the ultimate allocation of resources
too little too low
in general, regarding positive externalities, the private market will produce ____ of the good and at ___ a price
taxing
pigou advocated ___ the producers of the primary good by the amount of the marginal social cost of the negative externality
excludable
the owner can keep anyone from using it
rival
there is not enough for everyone who wants it
the free-rider problem
with a public good, no one has the incentive to tell the truth about his/her preferences