Anti-Trust Laws - laws designed to prevent monopoly power and encourage competition to benefit consumers
Exclusionary Goods - goods that allow a business to block people from using them
Externality - effects of production or consumption on those other than the producer or consumer
Free Riders - those who consume resources without paying for them
Gini Coefficient - a measurement (ranging from 0 to 1) of the level of inequality in a society
Inequality - the degree to which some people have more income or wealth than others
Lump-Sum Tax - a tax of a fixed amount of money regardless of the quantity produced or consumed
Lump-Sum Subsidy - a payment of a fixed amount of money regardless of the quantity produced or consumed
Marginal External Benefit - the benefit to those other than the consumer of one additional unit being consumed
Marginal External Cost - the cost to those other than the producer of one additional unit being produced
Marginal Private Benefit - the benefit to the consumer of one additional unit being consumed
Marginal Private Cost - the cost to the producer of one additional unit being produced
Marginal Social Benefit - the private + external benefit of one additional unit being produced & consumed
Marginal Social Cost - the private + external cost of one additional unit being produced & consumed
Negative Externalities - negative effects of production or consumption on those other than the producer or consumer
Per-Unit Tax - a tax of a set amount of money for each unit produced & consumed
Per-Unit Subsidy - payment of a set amount of money for each unit produced & consumed
Positive Externalities - positive effects of production or consumption on those other than the producer or consumer
Private Sector - businesses
Progressive Taxes - Taxes that take a higher percentage from people with higher income
Proportional Taxes - Taxes that take the same percentage of everyone's income (also known as flat taxes)
Public Sector - government
Regressive Taxes - Taxes that take a lower percentage from people with higher income
Rival Goods - goods that can only be consumed once - after they are used up, there is none left for others
Socially Inefficient - failing to achieve the socially optimal quantity
Socially Optimal Quantity - the quantity produced that would maximize total consumer and producer surplus