In economics, an externality is an effect from one activity which has consequences for another activity...

In economics, an externality is an effect from one activity which has consequences for another activity but is not reflected in prices or costs. Provide an example of an activity you are aware of that has resulted in an external cost to the environment and/or human health.

Bonus: Explain how you would address the external cost you have identified.

Solutions

Expert Solution

People in the economy burning crackers at the time of festivals and other events lead to a negative externality in the market. It produce harmful noices and smoke in the environment and cause disturbance for the pets and elderly.

The price of the crackers do not reflect the negative externality in the market. to reduce the negative externality in the market there should be increased taxes on the crackers, that will make them costly and people will reduce the amount of crackers they buy in the market. this will reduce the negative externality.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Question 1 Define an externality. Distinguish a negative externality from a positive externality, and give one...

Question 1 Define an externality. Distinguish a negative externality from a positive externality, and give one example of each. What is meant by a production externality as opposed to a consumption externality? Give one example of a negative production externality and one of a positive consumption externality.

1. Keynesian economics and neoclassical economics have been challenging, attacking and refuting one another ever since...

1. Keynesian economics and neoclassical economics have been challenging, attacking and refuting one another ever since his General Theory from 1936. (a) outlines the basic dispute between them and (b) explains why so old and often repeated debate continues to be a major concern of the mainstream economics profession.

1. Which of the following is/are required for retrotransposons to move from one location to another...

1. Which of the following is/are required for retrotransposons to move from one location to another in the genome? Select one or MORE: a. RNA polymerase b. DNA polymerase c. ribosomes d. reverse transcriptase 2. Which of the following is/are not commonly used in gene expression and cell replication in human cells? Select one or MORE: a. ribosomes b. reverse transcriptase c. DNA-dependent RNA polymerase (DNA-->RNA) d. DNA-dependent DNA polymerase (DNA-->DNA) e. RNA-dependent RNA polymerase (RNA --> RNA) 3. Ubiquitin...

Which of the following make the House of Representatives and the Senate different from one another?...

Which of the following make the House of Representatives and the Senate different from one another? being elected by the people or the states the number of people in the two chambers being eligible to run for reelection

1. Late detection of tumours has 3 significant consequences. Which of the following is NOT one...

1. Late detection of tumours has 3 significant consequences. Which of the following is NOT one of them? a) Risk of metastases is highest b) Larger tumours are less responsive to drug therapy c) Patients tolerability to treatment is reduced d) Complete surgical removal is impossible 2. Which of the following does not explain why the immune system contributes little to killing cancer cells? a) Certain cancers compromise the immune system directly b) Difficult recognition of cancer cells by immune...

One of the Principles of economics “Markets Are Usually A Good Way to Organize Economic Activity”....

One of the Principles of economics “Markets Are Usually A Good Way to Organize Economic Activity”. Based on your understanding of this principle, first, explain in detail the idea behind this principle. Second, how the resources and economic activity organized under socialism and capitalist systems. Third, in your opinion, which system that you believe is better in the allocation of resources as well as Organize Economic Activity 500 MINIMUM

The exact point in time at which an individual transitions from one developmental phase to another...

The exact point in time at which an individual transitions from one developmental phase to another (for example, middle childhood to adolescence) is often assigned somewhat arbitrarily. In fact, even developmental scientists/authors don't always agree on "where" the lines between these artificial constructs fall. If you were given the task to defend why a particular child had moved solidly into adolescence, what would be the 3 most important non-physical areas of development you would examine to make the decision (i.e.,...

Which one of the following statements is correct? A) A cash dividend has no effect on...

Which one of the following statements is correct? A) A cash dividend has no effect on the market value per share. B) A stock repurchase increases the market value per share. C) Stock repurchases are more tax advantageous than are cash dividends. D) A stock repurchase increases the book value of shareholders' equity. Answer is C, need an explanation for B and D, I think stock repurchase will increase the stock price.

8. A network externality is a situation: a.) in which the marginal benefit from the consumption...

8. A network externality is a situation: a.) in which the marginal benefit from the consumption of the good depends on the number of other individuals who also use the good. b.) that often arises in the markets for transportation and communication. c.) in which the value of a good to the consumer is dependent on how many other people also consume the same good. d.) All above are true.

Which of the following is not an externality? Select one: a. Eating delicious cake causes weight...

Which of the following is not an externality? Select one: a. Eating delicious cake causes weight gain b. Smoking cigarettes damages other people’s lungs. c. Staying at home reduces the spread of coronavirus. d. Using the internet heavily reduces the neighbors’ internet speed.

Subjects