1. 10Externalities 2. Recall:Adam Smith’s “invisible hand” of the marketplace leads self-interested buyers and sellers in a market to maximize the total benefit that…

1. 4 THE ECONOMICS OF THE PUBLIC SECTOR 2. 10 Externalities 3. Recall:Adam Smith’s “invisible hand” of the marketplace leads self-interested buyers and sellers in a…

Slide 1 Slide 2 SWS © 2011 1 MIDTERM (UNITS 1-8) Slide 3 SWS © 2011 2 Economics defined Economics is defined as the social science primarily concerned with the problems…

Slide 14 THE ECONOMICS OF THE PUBLIC SECTOR Slide 2 Copyright©2004 South-Western 10 Externalities Slide 3 Copyright © 2004 South-Western Recall: Adam Smith’s “invisible…

Slide 1© 2007 Thomson South-Western Slide 2 Pollution Think about air pollution from a factory.Think about air pollution from a factory. The firm does not have to pay the…

Session 8 Externalities © 2002 by Nelson, a division of Thomson Canada Limited Lectured by Prof. Dr. Ferdinand D. Saragih, MA Mankiw et al. Principles of Microeconomics,…

Lecture 1 Principles of Micro Externalities We Will Learn: what an externality is why externalities can make market outcomes inefficient. how people can sometimes solve the…

1. 4 THE ECONOMICS OF THE PUBLIC SECTOR 2. Copyright©2004 South-Western 1010Externalities 3. Copyright © 2004 South-Western • Recall: Adam Smith’s “invisible hand”…

1. ExternalitiesExternalities Part IPart I 2. • Learn the nature of an externality. • See why externalities can make market outcomes inefficient. • Examine how people…

Chapter 10 Externalities © 2002 by Nelson, a division of Thomson Canada Limited Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition In this chapter you will⦅