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Demand can be defined as the willingness and ability of a consumer to purchase a good or service.The law of demand states that the quantity demanded of a good or service increases as its price dec...
An externality is any effect on a third party caused by actions and transactions that don't directly involve them. Negative externality of consumption can be defined as the cost imposed on the thi...
A merit good is a good which has positive externalites and therefore people do not consume enough of them. For example, vaccinations.
A public good has two characterisitics, it is non-rival: this m...
The quantity of other goods sacrificed to get another unit of that good.
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