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10 Cards in this Set
- Front
- Back
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WILLINGNESS TO PAY |
A measure of how much a buyer values a good by the amount they are prepared to pay to acquire the good |
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CONSUMER SURPLUS |
The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it |
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PRODUCER SURPLUS |
The amount a seller is paid minus the cost of production |
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DEADWEIGHT LOSS |
The fall in total surplus that results from a markrt distortion, such as a tax |
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INTERNALIZING AN EXTERNALITY |
Altering incentives so that people take amount of the external effects of their actions |
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PIGOVIAN TAX |
A tax enacted to correct the effects of a negaive externality |
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TAX INCIDENCE |
The manner in which the burden of a tax is shared among participants in a market |
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SUBSIDY |
A payment to buyers and seller to supplement income or lower costs and which thus encourages consumption or provides an advantage to the recipient |
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SOCIAL RESPONSIBILITY |
The responsibility a firm has for the impact of their product and activities on society |
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ETHICAL RESPONSIBILITY |
The moral basis for business activity ans whether what the business does is right and is underpinned by some moral purpose doing what is right |
