"A" & match the definitions in column B with the meanings or examples or facts in column "C by writing the lower cassetter of your choice under column "B" Column "A" Column "B" Column "C" 1. Market Failure A .A good whose consumption by one person doesn't reduce its consumption by grewover, a Failure to install a smoke alarm because of a fire 2. Externality that is, it is nonnvalrous in consumption but the same good can be excludable or nonexcludable insurance policy . 3. Negative 3 . Information that either the buyer or the seller in a market exchange has Metheoes not b. Unequal access toinformation to both parties involved have The theorem developed by Ronald Coase who won Externality C . Anyone who receives the benefits of a good without paying for it. Nobel Prize in Economican 1981 that states bargainin 4 . Positive D _ A side effect of an action that affects the well -being of third parties between the parties involved generate efficient Externality E . A phenomenon in which the parties on one side of the market, who have information not outcome as long as transaction costs of reachingdeal are minimal or zero regardless of who owns the right 5. Marginal Social known to others , self-select in a way that adversely affects the parties on the other side of The total costof production of goods for the firm & to Coats (MSC] the market. associated damage caused by pollutionto the society 6. Marginal Social - F. The condition when an individual's or group's actions impose a cost (adverse side effect ) on large. Benefits MSB) others . The additional benefit the society enjoys becauseroof 7.Socially Optimal G . A condition that exists when one party to a transaction changes his belteror in a way activity , such as manicured lawns and gardens that is hidden from and costly to the other party - F. Inability of the market to bring desirable results to Amount (Output) H . The sum of marginal private cost? () and marginal external Costs/FC). society, monopoly firm activities are good examples 8 . Internalizing I. A characteristic of a good whereby it is impossible , or prohibitively costly, to 9. The consumption by one doesn't reduce the amount Externalities exclude someone from receiving its benefits after it has been produced available for othersan example : Street lights 9 . Coase Theorem J. A situation in which the market does not provide the ideal or optimal amogot of a h. The ability to exclude people from use for not paying K. The condition when an individual's or group's actions cause a benefit (beneficial side effect Free loading 10 . Rivalrous in for others. May happen in the market feed used cars ("Lemons K. The inclusion of pollution contechniques and Consumption _L _An amount that takes into account & adjusts for all benefits (external & privatecosts measures as part of the cost of doing usiness 11.Public Good (external & private ); the amount at whichS = MBC. Sometimes referred to as "efficient A good characterized by consumption indivisibilitys 12 . Nonrivalrous in amount in exhaustiveness , e.gDefense Consumption M . An externality is internalized if the persons or group that generated the externality Incomposting tote benefits to direct users of services 13 . Excludable into their own private or internal cost-benefit calculations the external benefits (in case of nationwide vaccinationprogram & the society at large positive externality ) or the external costs (in the casenegative externality). 14 . Non-excludable n. A consequence of an activityhat may be - of on third N . In the case of trivial or zero transaction costs, the property rights assignment does not matterparties 15 .Free Rider to the resource allocationtcome. Socially desirable and acceptable outcomes 16 .Asymmetric 0. A good whose consumption by one person reduces its consumption by offears ofit the P. The additional cossociety faces becauseof a certain Information features of a public good. activity , such as illness , discomfort , pain & sufferings 17 .Adverea P. A characteristic of a good whereby it is possible, or not prohibitively costly, to exclude q. The consumption by one reduces the availability for others in the case of private goods Selection someone from receiving its benefits after it has been produced r. The inability texclude people from the use of a good 18 . Moral Hazard _Q - A good whose consumption does not reduce its consumption by others - Sum OF MENinE minal exiemal benefits OVER 1 a service for not paying in the case of public goods .3
