One of the most prominent institutions in our modern society?
What is property?
100
These goods have low rivalry and are non-excludable.
What are public goods?
100
These are formal or informal rules that structure human interaction.
What are institutions?
200
These types of externalities lead to market failures.
HINT (positive, negative, neither, both)
What are negative and positive externalities?
200
A numerical limit on how much of something is allowed to be produced.
What is a quota?
200
These lead to the establishment of property rights.
What are private negotiations?
200
These goods are held by society.
What are public goods?
200
Corporations, religions, and stock exchanges are examples of these.
What are organizations?
300
These types of externalities lead to sub-optimal situations.
HINT (positive, negative, neither, both)
What are positive and negative externalities?
300
The primary reason that externalities go unresolved.
What are negotiation barriers?
300
Property rights are used to prevent this from happening.
What is the tragedy of the commons?
300
A fishing pond is in an example of this type of good.
What are common goods?
300
The government has a monopoly on this.
What is the legitimate use of force?
400
A way for externalities to enter the competitive market model.
What is internalizing the externality?
400
These are the two main implementations of government regulation.
What are taxes and subsidies?
400
Property rights are implemented to reduce these.
What are public goods.
400
Electricity is an example of this type of good.
What are collective goods?
400
Agreements entered into voluntarily because both parties anticipate that they will gain from the agreement.
What are contracts?
500
According to this theorem, private parties should be able to resolve inefficiencies created by externalities.
BONUS: Name the person who developed this theory.
What is the Coase Theorem?
-- Ronald Coase
500
A social cost of production for negative externalities.
What is a left shift in the supply curve?
500
Property rights ensure the security of these.
What are private goods?
500
These types of goods can be consumed (not simply restricted to eating).
What are private goods and common resources?
500
An example of inefficiency and corruption in government.