Assignment
Details:
Externalities are costs or benefits that are caused by producing or consuming a good but that are not included in the market price for the good. They are simply the unintended side effects of market activities. Externalities can be positive or negative. One example of a positive externality might be when beekeepers provide a means of pollination for fruit growers. Air, water, and noise pollution are examples of negative externalities.
Answer the following questions to describe an instance in which you, an acquaintance, or family member has experienced an externality. Use economic concepts, and use references in your main contribution.
How did it affect you (or your acquaintance or family member?) Please explain.
What were the effects? Please explain.
Did you (or your acquaintance or family member) experience increased or decreased health or quality of life? Explain.
If you choose to write about a negative externality such as pollution, what do you think is the best way to reduce pollution? Please explain.
If you choose to write about a positive externality, what is the economic problem that positive externalities create? How would you resolve that? Please explain.
Deliverable Length: 200 words (minimum)
Reading Assignment
Read the following chapters from the Microeconomics textbook:
• Chapter 10
o Private Goods vs. Public Goods, pp. 156 - 157
o Artificially Scarce Goods and Common Resources, pp.156 - 157
• Chapter 6
o Long Run and Short Run Costs, pp. 84 - 85.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.