ECO 201 Exam III Study Guide

ECO 201 Exam III Study Guide - Exam III Study Guide Chapter...

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Exam III Study Guide Chapter 9 World Price - the price of a good that prevails in the world market for that good Tariff - a tax on goods produced abroad and sold domestically Chapter 10 Externality - the uncompensated impact of one persons actions on the wellbeing of a bystander exhaust from a car is a negative externality because it creates smog that other people must deal with 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. Transaction costs - the cost that parties incur in the process of agreeing to and following through on a bargain. Corrective tax - a tax designed to induce private decision makers to take account of the social costs that arise from negative externality. Chapter 11 Excludability - the property of a good whereby a person can be prevented from using it. Rivalry consumption
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This document was uploaded on 11/02/2011 for the course ECO 201 at Miami University.

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ECO 201 Exam III Study Guide - Exam III Study Guide Chapter...

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