Econ Quiz 3

the study of how the allocation of resources affects economic well-being

the maximum amount that a buyer will pay for a good

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

the value of everything a seller must give up to produce a good

the amount a seller is paid for a good minus the seller's cost of providing it

the property of society getting the most it can from its svarve resources

the property of distributing economics prosperity uniformly among the members of society

the fall in total surplus that results from a market distortion, such as a tax

the price of a good that prevails in the world market for that good

a tax on goods produced abroad and sold domestically

the uncompensated inpact of one person's actions on the well-being bystander

altering incentives so that people that amount of the external effects of their actons

a tax designed to induce private decisions maturs to take account of the social costs that arise from a negative externality

the proposition that if private parties can bargin without coast over the allocation of resources they can solve the problem of externalities on their own