Key Terms
Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Question
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Marginal social cost of pollution, p. 276
Marginal social benefit of pollution, p. 276
Socially optimal quantity of pollution, p. 276
External cost, p. 278
External benefit, p. 278
Externalities, p. 278
Negative externalities, p. 278
Positive externalities, p. 278
Coase theorem, p. 280
Transaction costs, p. 280
Internalize the externality, p. 280
Environmental standards, p. 282
Emissions tax, p. 282
Pigouvian tax, p. 284
Tradable emissions permits, p. 285
Pigouvian subsidy, p. 289
Technology spillover, p. 289
Excludable, p. 291
Rival in consumption, p. 291
Private good, p. 291
Nonexcludable, p. 291
Nonrival in consumption, p. 292
Free-rider problem, p. 292
Public good, p. 293
Cost-benefit analysis, p. 297