Across
- 4. When a firm produces at the exact ammount society demands, we call this allocativley efficient, or socially______
- 5. When a person benefits from a good or service without having to pay anything (i.e. Lightohouse or Fireworks)
- 7. A good that is restricted from being used by certain people (Private Good)
- 10. When a good has an unintended effect that spreads beyond the reach of a government/firm, similar to externalities
Down
- 1. Graphical representation of income/wealth inequality in society. The straighter the line, the more equal wealth is, the more curved it is, the more unequal wealth is
- 2. The _____ Theorem states that in a competitive market without transaction costs property rights will be dealth with an efficient decision
- 3. When a good can only be used by a single person, resulting in competition (i.e. tissues)
- 6. When an indivdual has unlimited access to a natural resource, society will likely _______ it and deplete the resource. This is also known as the Tragdy of the commons
- 8. When the government offers compensation to a firm so it can produce at a rate and price acceptable to society's needs
- 9. A condition of wealth where a person does not have enough income to afford the basic necessities of life