FSU PUP 3002 Final Exam Study Guide –
Questions With Definitive Solutions
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Practice questions for this set
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production process requiring large amounts of capital in relation to labor
Choose an answer
1 negative externality 2 Technical Uncertainty
3 Pigouvian Tax 4 capital intensive
Don't know?
Terms in this set (50)
the harm, cost, or inconvenience suffered by a third
negative externality
party because of actions by others
the total loss of producer and consumer surplus
deadweight loss
from underproduction or overproduction
, a fee that the government charges polluters for
carbon tax
each unit of greenhouse gas they emit
a tax on the part of their income that households
consumption tax
spend
a tax imposed on an activity that creates a negative
Pigouvian Tax
externality
benefits created by a public good that are shared
positive externalities by the primary consumer of the good and by
society more generally
Requires manufacturers to take back electronic
cradle-to-grave
products at the end of their useful lives and repair,
approach
remanufacture, or recycle them
a problem caused by an agent pursuing his own
principal-agent problem interests rather than the interests of the principal
who hired him
Arises when people behave recklessly because they
Moral Hazard
know they will be saved if things go wrong
A high-risk person benefits more from insurance, so
Adverse Selection
is more likely to purchase it.
Ex post control tactics Wait for an agent to misbehave, then punish
Agent does an action before the principle
ex ante control tactics
incentivizes that action
the uncertainty the agency has in its estimate of the
Technical Uncertainty
policy consequences of a given choice
the uncertainty about what type of choice the
procedural uncertainty
agency is likely to make
The condition of Earth's atmosphere at a particular
weather
time and place.
The average weather conditions in an area over a
climate
long period of time
warming that results when solar radiation is trapped
greenhouse effect
by the atmosphere
Questions With Definitive Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
production process requiring large amounts of capital in relation to labor
Choose an answer
1 negative externality 2 Technical Uncertainty
3 Pigouvian Tax 4 capital intensive
Don't know?
Terms in this set (50)
the harm, cost, or inconvenience suffered by a third
negative externality
party because of actions by others
the total loss of producer and consumer surplus
deadweight loss
from underproduction or overproduction
, a fee that the government charges polluters for
carbon tax
each unit of greenhouse gas they emit
a tax on the part of their income that households
consumption tax
spend
a tax imposed on an activity that creates a negative
Pigouvian Tax
externality
benefits created by a public good that are shared
positive externalities by the primary consumer of the good and by
society more generally
Requires manufacturers to take back electronic
cradle-to-grave
products at the end of their useful lives and repair,
approach
remanufacture, or recycle them
a problem caused by an agent pursuing his own
principal-agent problem interests rather than the interests of the principal
who hired him
Arises when people behave recklessly because they
Moral Hazard
know they will be saved if things go wrong
A high-risk person benefits more from insurance, so
Adverse Selection
is more likely to purchase it.
Ex post control tactics Wait for an agent to misbehave, then punish
Agent does an action before the principle
ex ante control tactics
incentivizes that action
the uncertainty the agency has in its estimate of the
Technical Uncertainty
policy consequences of a given choice
the uncertainty about what type of choice the
procedural uncertainty
agency is likely to make
The condition of Earth's atmosphere at a particular
weather
time and place.
The average weather conditions in an area over a
climate
long period of time
warming that results when solar radiation is trapped
greenhouse effect
by the atmosphere
