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Definition
| A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice. Weighs costs and benefits. |
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Definition
| A formal discipline used to help appraise, or assess, the case for a project or proposal, which itself is a process known as project appraisal; and an informal approach to making decisions of any kind. Under both definitions the process involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option. |
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| Social welfare (wealth) maximization |
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Definition
| A real-valued function that ranks conceivable social states (alternative complete descriptions of the society) from lowest on up as to welfare of the society. Inputs of the function include any variables considered to affect welfare of the society. |
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| The use of modern economic tools to study problems that are traditionally in the province of political science. In particular, it studies the behavior of politicians and government officials as mostly self-interested agents and their interactions in the social system either as such or under alternative constitutional rules. |
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| An externality which operates through prices rather than through real resource effects. For example, an influx of city-dwellers buying second homes in a rural area can drive up house prices, making it difficult for young people in the area to get onto the property ladder. |
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| Private: The costs that the buyer of a good or service pays the seller. Social: The sum of private costs and external costs. |
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| A cost incurred in making an economic exchange. |
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| When the production or use of goods and services by the market is not efficient. |
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| Net benefits to agents from voluntary trading with each other. |
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| Patent (copyright) protection |
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Definition
| A set of exclusive rights granted by a state to an inventor or his assignee for a limited period of time in exchange for a disclosure of an invention. |
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Definition
| value = perceived benefits received / perceived price paid |
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| The hypothesis that addictions (to heroin, tobacco, television, etc.) can be usefully modeled as specific kinds of rational, forward-looking, optimal consumption plans. |
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| An impact on a party that is not directly involved in the transaction. E.g. Pollution is a negative externality. |
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| Property is any physical or virtual entity that is owned by an individual or jointly by a group of individuals. An owner of property has the right to consume, sell, rent, mortgage, transfer and exchange his or her property. |
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Definition
- consent of owner required for transfer
-value of right decided in market transaction |
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Definition
-consent of owner not required for transfer
-value determined by court/legal system |
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Definition
| Offsetting behavior occurs when policies implemented to reduce risk exposure of potential victims change consumers’ behavior in such a manner that they become lax and increase the likelihood of an accident. |
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Definition
| The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk. |
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Definition
| A component of Product liability which is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. |
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Term
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Definition
| A component of Product liability which is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. |
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Term
| product liability (tort) law |
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Definition
| A component of Product liability which is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. |
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Definition
| The property law doctrine that controls the sale of real property after the date of closing. |
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