AP课程微观经济学名词解释(8)

　　Please highlight critical terms;

　　*=not important for exam but you should know

　　Chapter Eight Public sector

　　Externality -when a decision imposes a cost (negative externality) or imparts a benefit (positive externality) to people not involved in the decision making. Public Goods- goods for which the consumption by one person does not exhaust the amount available for others, and for which prevention of consumption is difficult

　　social cost-those costs which are incurred by the public,. Polluted waterways; those are costs not captured by the market

　　social benefits-those benefits which are realized by the public or outside the buyer/seller exchange

　　pure Private Good a good that has exclusion and distributive characteristics

　　Technological efficiency-the identification of those inputs that have the greatest effect on output per $ of input expenditure

　　Pareto Efficiency-the optimal point(efficient point) for society when any further improvement for some comes at the expense of others

　　Quasi-Public Goods-goods which have some limited private good characteristics such as congestible public goods and price-excludable public goods

　　Market failure-occurs when resources are not allocated optimally. It may result from: externality, imperfect completion, public goods, imperfect information;

　　Imperfect information-buyers and/or sellers do not have full knowledge about available markets,prices,products,customers,suppliers and so forth.

　　Nonrival-one person’s consumption of that good does not affect its consumption by others

　　Nonexcludable-goods cannot be held back from those who desire access.

　　Poverty line-the official benchmark of poverty

　　Progressive tax-the government receives a larger percentage of revenue from families with larger incomes

　　*Regressive tax-collects a larger percentage of revenue from families with smaller incomes

　　*Proportional tax-collects the same percentage of income from all families

　　*Social security-program provides cash benefits and health insure to retired and disabled workers and their families

　　*Public Assistance-welfare typically provides temporary assistance to the very poor

　　*Supplemental Security Income-assists very poor elderly individuals who have virtually no assets and little or no social security entitlement

　　Unemployment compensation-provides temporary assistance to unemployed workers

　　*Medicaid provides health and hospitalization benefits to the poor

　　*Food stamp/Public Housing-programs provide food and shelter for the poor

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