Chapter 10

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Author:
Ruth5151
ID:
19816
Filename:
Chapter 10
Updated:
2010-05-18 20:08:40
Tags:
Economics Mankiw
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Description:
A.P. Economics textbook, Chapter 10 vocabulary
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  1. externality
    the uncompensated impact of one person's actions on the well-being of a bystander
  2. internalizing an externality
    altering incentives so that people take account of the external effects of their actions
  3. Coase theorem
    the proposition that, if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
  4. transaction costs
    the costs that parties incur in the process of agreeing and following through on a bargain
  5. Pigovian tax
    a tax enacted to correct the effects of a negative externality

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