ECONEXAM2ULTIMATESTUDYGUIDE - CHAPTER 32 BENEF I TS OF PR...

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Unformatted text preview: CHAPTER 32 BENEF I TS OF PR IVATE PROPERTY-With Private Property people have incentives not to misuse because there is legal recourse if they do.-Incentives to maintain, protect, conserve and listen to the wishes of others-Private property is easily defined With common property however (cookie example) everyone can take however many cookies they want then someone might not get. Social Costs vs Private Costs. Private costs are internal, and only help/hurt the person who is making the action. Social costs- is the full cost when society who does not do the action is affected. Public Goods Public Good has 2 characteristics. 1. Non-Rival Consumption (More than one person gets it) 2. Non Excludable (You do not have to pay to enjoy it). Example: Frank The Tank Streaking in Old School. Externalities Negative- Anything that arises out of the use of something that hurts people/things around it -Example Pollution Positive- When something arises out of something that benefits the people/things around it-Example Building a gold course Inframarginal- When something arises out of something that very few people actually even care about-Example People putting on fragrances in class Private v. Common PropertyPrivate v....
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This note was uploaded on 04/20/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Spring '08 term at Pennsylvania State University, University Park.

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ECONEXAM2ULTIMATESTUDYGUIDE - CHAPTER 32 BENEF I TS OF PR...

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