Discuss the Importance of Predisaster Plans, Including Who Should Make

question 79

Essay

Discuss the importance of predisaster plans, including who should make them and what, specifically, they should address.

Understand the definitions and differences between Pigovian taxes and command-and-control policies.

Recognize the concept of externalities and their impact on market efficiency.

Identify and contrast different public policies toward externalities.

Calculate the social value of goods considering both external costs and benefits.

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Definitions:

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Systematic Error

A consistent, predictable error present in the method of measurement that affects the accuracy of results.

Faulty Heuristics

Cognitive shortcuts that lead to errors in judgment or decision-making.

Heuristics

Simple, efficient rules, often learned or instinctive, that help in making decisions, forming judgments, or solving problems.