Question

This week, we cover Trade and Externalities. Choose whichever topic you found of most interest (trade OR externalities) and respond to the following questions. Note: Each response should only be 3 - 5 sentences.

1. What surprised you most while learning about this topic, and why?
2. What was the most important thing to you that you learned from this topic? Why do you think it's most important?
3. What one question remains uppermost in your mind?
4. How is what you learned this week relevant to you in your life (outside of class!)
5. What made you curious about this topic – what did you want to learn more about and why?

When you're ready to submit, please click on the "Create Journal Entry" button at the top of the screen.

Answer 1

Although I found both the topics trade and externalities very interesting, I found externalities to be little more interesting if I have to choose one among these two.

1. What surprised me most while learning about externalities was to know that there could be positive as well as negative externality. Generally when we talk about externality we think of it as pollution, a negative externality or presence of monopoly.

I was astonished to read that we could also have some sort of positive externality and that these benefit others without having have to charge them explicitly. External benefits from development of renewable energy sources such as wind power is an example of positive externality. It doesn't only provide green energy but it also benefits the society at large by reducing pollution without having them have to pay any cost.

2. The most important topic to me that I learned was how we could increase externalities in the society which could benefit the society at large with no extra cost.

The reason why it is most important is because for any benefit to be made available, we have to pay something, not with positive externality. It is free of cost. Indeed a rare phenomenon.

3. The most uppermost question that remains in my mind is when could we have all the people around the world literate enough to understand basics of economics, environment, all the leaders, politicians, researchers agree to the common issues that are very simple to be implemented and can benefit the society at large, in this case knowing, understanding and ultimately working on bringing positive externalities like power from renewable energy resources etc. to the common masses.

4. Obviously environment. It does remain relevant to me all the time. As we are moving towards sustainable development we must ensure that the future generation has cleaner air, food and a non - polluted world.

5. How could we make sure that positive externalities can be brought to the common masses by using economies of scale ? This question made me curious to know more about this topic. Find more examples of it and make it known and available to the masses.

3.