Question

What is meant by Externalities? & Outline the advantages and disadvantages of Airline Travel.

Answer 1

# An externality simply refers to a cost or benefit that is caused by a producer but is not financially incurred or received by that producers. Economists generally view externalities as a serious problem that makes markets inefficient , leading to market failures. The externalities are the main catalysts that lead to the tragedy of the commons.

An externality can be either positive or negative and can stem from either the production or cinsumption of a good or service.

# Advantages of air travel

#The bigget advantage of air travel is that it is often the fastest way to get from one place to another espicially when long distances are involved. It helps save us a lot of time

#Unlike railways and road transport there is no need to spend money on the construction of any track or road, only airports have to be constructed

# An airways has great strategic importance. It can be used for internal and external security.

# It also easy to transport costly and perishable goods through air transport.

# Air travel is free from any physical barriers such as mountains, rivers and valleys

Disadvantages of Air travel

# Air transport is a costly service. Its operational costs are too high. Middle class and poor class can't afford it

# Air transports are more prone to accidents. A small mistake can be very dangerous for passengers.

# For creating aviation facilities , huge investments are required. The cost of aero planes, construction and mantenance of aerodromes and control mechan ism needs a capital expenditure.