Assignment:
A few questions on Externalities:
a) What are the external costs as opposed to internal costs? When external costs are present, what is likely to be the relationship between the market output of a good and the ideal of economic efficiency? What positive role can government play to reach more efficient market outcomes?
b) Give one example of a negative externality that you have encountered in your life/worklife, describe how that affects you, and give suggestion on what you think should have been done with it.
c) Give one example of a positive externality that you have encountered in your life/worklife, describe how that affects you, and give suggestion on what you think need to be done to maintain it.
As a guideline, each of the 10 points will be derived from the following:
- Post your answer (400 to 500 words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief "yes, I agree" or "no, I do not agree" postings are not adequate posts
- Write in correct grammar; any errors will translate to a deduction in points.
- Check for the spelling; any errors will deduct points.
- Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).
- You get one point when you respond to one of your classmates' posts, also with substantive comments (100 to 200 words).
- One more point when you respond to another classmate's post (100 to 200 words).
- One point for collaboration. It is intended that your involvement in discussions be of a collaborative nature. Collaboration spirit is quite different from confrontation.
- Deadline: due date for each DQ will be on Monday night 11.55pm, but you are free to make your comments prior to Monday night. One point will be deducted for each day of late submission.
- Offer a creative solutions in addition to the obvious socio-economic impacts of each topic, such as environment, politic, or other issues.
- Offer a future recommendation or alternative options for the future with regard to the topic in question.