7. Mat ea concept in Column A with an example in Column B.

Column A a. A negative externality b. A Pigovian tax c. A positive externality d. A subsidy e. An upstream tax Column B 1. A policy to increase production when a good generates a positive externality 2. Represented by the difference between the private marginal benefits and the social marginal benefits 3. A tax on raw materials 4. Converting future costs and benefits to present value 5. Represented by the difference between the private marginal costs and the social marginal costs f. An ecosystem service 6. Using the costs of building a water treatment plant to estimate the value of natural benefit g. A nonuse benefit h. Replacement cost method i. Revealed preference method j. Contingent valuation water purification 7. Using surveys to elicit information about willingness to pay 8. Internalizes a negative externality 9. Flood protection from a wetland 10. Estimating the recreation benefits of a lake using data on visitation patterns