# data[].attributes.attachment_link.title
ESI Unit 2 Lesson 12 - Externalities Flashcards | Quizlet

# data[].attributes.attachment_link.description
Start studying ESI Unit 2 Lesson 12 - Externalities. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

# data[].attributes.body
1. Describe the concepts of marginal private benefits (MPB), marginal social benefits (MSB), marginal private costs (MPC) and marginal social costs (MPC).

2. Describe the meaning of externalities as the failure of the market to achieve a social optimum where MSB=MSC.

3. Explain, using diagrams and examples, the concept of negative externalities of production, and the welfare loss associated with the production of such a good or service.

4. Explain that demerit goods are goods whose production creates external costs.

5. Evaluate, using diagrams, the use of government responses, including government regulation, and market-based policies including taxes on the product, on the pollutant, and tradable permits.

6. Explain, using diagrams and examples, the concept of positive externalities of consumption, and the welfare loss associated with the consumption of such a good or service.

7. Explain that merit goods are goods whose consumption creates external benefits.

8. Evaluate, using diagrams, the use of government responses, including subsidies, legislation, advertising to influence behavior and direct provision of goods and services.

# data[].attributes.attachment_link.title
D25s_Marketable Pollution Permits Example - solution.pdf

# data[].attributes.attachment_link.title
V06_DWL of Positive and Negative Externalities.pdf