What Is Object Permanence

question 83

Essay

What is object permanence?

---

Definitions:

External Costs

Costs created by an activity that affect other parties without them being reflected in the market prices, similar to negative externalities.

Production

The process of creating goods and services through the combination of labor, materials, and capital.

Coase Theorem

A principle that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of rights.

Free-Rider Problem

A situation where some individuals consume more than their fair share of a public resource, or shoulder less of the cost of its production.