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Negative Externality
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of the decision. If a good has a negative externality, then the cost to society is greater than the cost consumer is paying for it.
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Positive Externality
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A positive externality exists when an individual or firm making a decision does not receive the full benefit of the decision. The benefit to the individual or firm is less than the benefit to society. Thus when a positive externality exists in an unregulated market, the marginal benefit curve (the demand curve) of the individual making the decision is less than the marginal benefit curve to society. With positive externalities, less is produced and consumed than the socially optimal level.
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Internalizing externalities
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Altering incentives so that people take account of the external effects of their actions, can be done by imposing taxes(negative externality) or subsidies(positive externality)
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Excludable
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An Excludable good or service is the possibility of preventing a person from enjoying its advantages if they have not paid for it. Examples of excludable goods are Brinks Security, any sort of concert that you have to pay in order to be able to see.
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Non-Excludable
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In its purest form, non-excludability means that once a good has been created, it is impossible to prevent other people from gaining access to it (or more realistically, is extremely costly to do so).
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Rival
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A good or service is considered to be rival it its utility by a person decreases the available amount for another person. For instance a security company such as Brinks may work for more than just one Bank, but the truck they use to transport money to the banks at the same time.
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Non-Rival
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Non rival goods or services are those whose use by a person doesn't reduce or diminish the amount available for others. For instance, the services a police department and a concert on television are non rival.
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Public Good
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is a good that is both non-excludable and non-rivalrous in that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others. Examples of public goods include fresh air, knowledge, lighthouses, national defense, flood control systems and street lighting
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Efficiency Wage
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A higher than market-clearing wage set by employers to, for example:
-discourage shirking by raising the cost of being fired
-encourage worker loyalty
-raise group output norms
-improve the applicant pool
-raise morale
-discourage shirking by raising the cost of being fired
-encourage worker loyalty
-raise group output norms
-improve the applicant pool
-raise morale
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Means Tested Program
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Benefits are available only to families or individuals whose income and/or wealth falls below some minimum.
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Artificially Scarce Goods
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are a type of good in economics, sometimes classified as a subtype of public goods that are excludable but non-rivalrous, at least until reaching a point where congestion occurs. These goods are often provided by a natural monopoly.
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