market failure, when people who are not part of a marketplace interaction benefit from it or pay part of its costs, public goods, products provided by federal, state, and local government and consumed by the public as a group, free rider, person who avoids paying for a good or service but who benefits from the good or service anyway, infrastructure, consists of all the goods and services that are necessary for the functioning of society, externality, side effect of a product that affects someone other than the producer or the buyer, negative externality, externality that imposes costs on people who were not involved in the original economic activity, positive externality, externality that creates benefits for people who were not involved in the original economic activity, subsidy, government payment that helps cover the cost of an economic activity that has the potential to benefit the public as a whole, safety net, consists of government programs designed to protect people from economic hardships, transfer payment, transfers of income from one person or group to another even through the receiver does not provide anything in return, public transfer payment, transfer payment in which the government transfers income from taxpayers to recipients who do not provide anything in return, Tragedy of the commons, economic problem where the individual consumes a resource at the expense of society

Chapter 3-3

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