{"id":2478,"date":"2015-06-23T22:59:00","date_gmt":"2015-06-23T22:59:00","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterymicro1xngcxmaster\/?post_type=chapter&p=2478"},"modified":"2015-07-11T15:40:28","modified_gmt":"2015-07-11T15:40:28","slug":"glossary-public-goods","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/atd-herkimer-microeconomics\/chapter\/glossary-public-goods\/","title":{"raw":"Glossary: Public Goods","rendered":"Glossary: Public Goods"},"content":{"raw":"
<\/div>\r\n
additional external cost<\/dt>
additional costs incurred by third parties outside the production process when a unit of output is produced<\/dd>
biodiversity<\/dt>
the full spectrum of animal and plant genetic material<\/dd>
command-and-control regulation<\/dt>
laws that specify allowable quantities of pollution and that also may detail which pollution-control technologies must be used<\/dd>
externality<\/dt>
a market exchange that affects a third party who is outside or \u201cexternal\u201d to the exchange; sometimes called a \u201cspillover\u201d<\/dd>
free rider<\/dt>
those who want others to pay for the public good and then plan to use the good themselves; if many people act as free riders, the public good may never be provided<\/dd>
intellectual property<\/dt>
the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions<\/dd>
international externalities<\/dt>
externalities that cross national borders and that cannot be resolved by a single nation acting alone<\/dd>
market failure<\/dt>
When the market on its own does not allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure<\/dd>
marketable permit program<\/dt>
a permit that allows a firm to emit a certain amount of pollution; firms with more permits than pollution can sell the remaining permits to other firms<\/dd>
negative externality<\/dt>
a situation where a third party, outside the transaction, suffers from a market transaction by others<\/dd>
nonexcludable<\/dt>
when it is costly or impossible to exclude someone from using the good, and thus hard to charge for it<\/dd>
nonrivalrous<\/dt>
even when one person uses the good, others can also use it<\/dd>
pollution charge<\/dt>
a tax imposed on the quantity of pollution that a firm emits; also called a pollution tax<\/dd>
positive externalities<\/dt>
beneficial spillovers to a third party or parties<\/dd>
private benefits<\/dt>
the dollar value of all benefits of a new product or process invented by a company that can be captured by the investing company<\/dd>
private rates of return<\/dt>
when the estimated rates of return go primarily to an individual; for example, earning interest on a savings account<\/dd>
property rights<\/dt>
the legal rights of ownership on which others are not allowed to infringe without paying compensation<\/dd>
public good<\/dt>
good that is nonexcludable and nonrivalrous, and thus is difficult for market producers to sell to individual consumers<\/dd>
social benefits<\/dt>
the dollar value of all benefits of a new product or process invented by a company that can be captured by other firms and by society as a whole<\/dd>
social costs<\/dt>
costs that include both the private costs incurred by firms and also additional costs incurred by third parties outside the production process, like costs of pollution<\/dd>
social rate of return<\/dt>
when the estimated rates of return go primarily to society; for example, providing free education<\/dd>
spillover<\/dt>
see externality<\/dd><\/dl>\r\n
<\/div>","rendered":"
<\/div>\n
\n
additional external cost<\/dt>\n
additional costs incurred by third parties outside the production process when a unit of output is produced<\/dd>\n
biodiversity<\/dt>\n
the full spectrum of animal and plant genetic material<\/dd>\n
command-and-control regulation<\/dt>\n
laws that specify allowable quantities of pollution and that also may detail which pollution-control technologies must be used<\/dd>\n
externality<\/dt>\n
a market exchange that affects a third party who is outside or \u201cexternal\u201d to the exchange; sometimes called a \u201cspillover\u201d<\/dd>\n
free rider<\/dt>\n
those who want others to pay for the public good and then plan to use the good themselves; if many people act as free riders, the public good may never be provided<\/dd>\n
intellectual property<\/dt>\n
the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions<\/dd>\n
international externalities<\/dt>\n
externalities that cross national borders and that cannot be resolved by a single nation acting alone<\/dd>\n
market failure<\/dt>\n
When the market on its own does not allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure<\/dd>\n
marketable permit program<\/dt>\n
a permit that allows a firm to emit a certain amount of pollution; firms with more permits than pollution can sell the remaining permits to other firms<\/dd>\n
negative externality<\/dt>\n
a situation where a third party, outside the transaction, suffers from a market transaction by others<\/dd>\n
nonexcludable<\/dt>\n
when it is costly or impossible to exclude someone from using the good, and thus hard to charge for it<\/dd>\n
nonrivalrous<\/dt>\n
even when one person uses the good, others can also use it<\/dd>\n
pollution charge<\/dt>\n
a tax imposed on the quantity of pollution that a firm emits; also called a pollution tax<\/dd>\n
positive externalities<\/dt>\n
beneficial spillovers to a third party or parties<\/dd>\n
private benefits<\/dt>\n
the dollar value of all benefits of a new product or process invented by a company that can be captured by the investing company<\/dd>\n
private rates of return<\/dt>\n
when the estimated rates of return go primarily to an individual; for example, earning interest on a savings account<\/dd>\n
property rights<\/dt>\n
the legal rights of ownership on which others are not allowed to infringe without paying compensation<\/dd>\n
public good<\/dt>\n
good that is nonexcludable and nonrivalrous, and thus is difficult for market producers to sell to individual consumers<\/dd>\n
social benefits<\/dt>\n
the dollar value of all benefits of a new product or process invented by a company that can be captured by other firms and by society as a whole<\/dd>\n
social costs<\/dt>\n
costs that include both the private costs incurred by firms and also additional costs incurred by third parties outside the production process, like costs of pollution<\/dd>\n
social rate of return<\/dt>\n
when the estimated rates of return go primarily to society; for example, providing free education<\/dd>\n
spillover<\/dt>\n
see externality<\/dd>\n<\/dl>\n
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