Examlex
An event that one of Pavlov's dogs could see or hear but did not associate with food was called a(n)
External Benefits
Positive effects that an activity or transaction has on individuals or entities who are not directly involved in the activity, often justifying government intervention or subsidies.
Allocative Efficiency
A state of resource allocation where resources are distributed according to consumer preferences, leading to optimal production levels and pricing.
Corrective Tax
A tax designed to encourage private decision makers to take into account the social costs that arise from a negative externality.
Allocative Efficiency
A state where resources are allocated in a way that maximizes the net benefit to society, with products being produced at a quantity where the price equals marginal cost.
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