Question

For this discussion assignment, you will be analyzing externalities and market failures.

1. Name three examples of a negative externality. How do negative externalities directly and indirectly affect your life?
2. Name three examples of a positive externality. How do positive externalities directly and indirectly affect your life?
3. Provide a brief summary in your own words. What are your thoughts on the articles about coal? How does this relate to externalities and market failure?
4. Provide a brief summary in your own words. What are your thoughts on the articles about child care? How does this relate to externalities and market failure?
5. If you were appointed as the new U.S. Czar of Externalities, how would you address the negative externalities like pollution and unhealthy food in the United States right now, over the next 3-5 years, and over the next 10+ years? How would you address the positive externalities like child care and education in the United States right now, over the next 3-5 years, and over the next 10+ years? Explain your answers.

• Read this article about coal http://www.theatlantic.com/business/archive/2015/08/coals-externalities-medical-air-quality-financial-environmental/401075/
• Read this article about child care http://www.startribune.com/day-care-squeeze-is-hitting-minnesota-rural-families-hard/272439181/ and this follow-up article http://www.startribune.com/the-positive-externalities-of-child-care-and-market-failure/272590051/

Answer 1