Question

match these items. match the items in the left column to the items in the right column.

1. externality
2. marginal analysis
3. marginal revenue
4. net benefit
5. regulations
6. revenue

using marginal measurements to allocate scarce resources for benefit maximization
total benefit minus total cost
rules that control the behavior of others
change in total revenue resulting from adding one more unit of a good or service
money earned from selling a good or service
unintended (or \spillover\) effects that result from an action

Explanation:

1. Externality refers to unintended (or "spillover") effects that result from an action.
2. Marginal analysis is using marginal measurements to allocate scarce resources for benefit - maximization.
3. Marginal revenue is the change in total revenue resulting from adding one more unit of a good or service.
4. Net benefit is total benefit minus total cost.
5. Regulations are rules that control the behavior of others.
6. Revenue is money earned from selling a good or service.

Answer:

1. unintended (or "spillover") effects that result from an action
2. using marginal measurements to allocate scarce resources for benefit - maximization
3. change in total revenue resulting from adding one more unit of a good or service
4. total benefit minus total cost
5. rules that control the behavior of others
6. money earned from selling a good or service