Examlex
A high school student acts bored in class, and the teacher decides she is a bad student. This teacher discusses the student with other teachers who then treat that student as if she were a bad student. This describes the process of
Private Solutions
Individual or business-driven approaches or measures taken to resolve issues without the need for government intervention.
Externalities
Externalities are the positive or negative effects of economic activities on third parties that are not reflected in the cost of the goods or services involved.
Golden Rule
A principle denoting the optimal level of saving in an economy that results in the highest possible steady-state level of consumption.
Social Optimum
A condition in which resources are allocated in the most efficient manner, often considered in terms of welfare or utility maximization.
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