Definitions
Define opportunity cost
the next highest valued alternative use of a resource
This method values non-market resources in which the values attained are dependent upon the scenario described to the survey respondents.
contingent valuation
What are the 2 features of public goods
non-rivalrous and non-excludable
What is the powerhouse of the cell?
mitochondria
Define externality
the uncompensated impact of one person’s actions on the well-being of a bystander
If the discount rate is higher, the present value of future benefits becomes ______?
Lower
What is the name of the type of good that is non-excludable and rivalrous
Common good
What is the only food that never goes bad
honey
Define Value of a Statistical Life
the value people are willing to pay to reduce their risk of dying
This method uses expenditures on recreation to estimate the value of environmental goods.
Travel cost method
What does it mean to be rivalrous?
if someone is using something nobody else can be using it at the same time
What are the 3 places the Declaration of Independence was read?
Philadelphia, Easton, Trenton NJ
Define Marginal Excess Burden
the change in deadweight loss for an additional dollar of tax revenue
This model uses job attributes such as risk and working conditions to determine how much a worker is willing to be paid for a job
Hedonic wage
Provide an example of each of the 4 categories of goods
Private: clothes, phone, car, etc
Common: fish, timber, coal
Club: netflix, private park, satellite tv
Public: air, national defense
What do you call it when a bowler makes 3 strikes in a row?
a turkey