Eco/365

4. What are externalities, and how do they typically affect the price of a good or service?

As we see in the articles the most common external being competitive situation, this has a huge impact on businesses if the competiors has a better product this could make the consumer choose that product, resulting in decline in sales. This being in

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

Negative externalities are costs imposed upon an individual or group that is outside or external to a transaction.

Pollution has become a heated issue in recent years. The destruction of the environment along with serious health problems are the eventual effects. The extensive use and availability of automobiles, tremendous amounts of production in the booming economy and the constant increase in demand for energy, can be held responsible.

Air pollution are impacting the environment, and it is imperative that laws are enforced to help build and sustain a better air quality. Air pollutants can be in the form of particulate matter which can be very harmful to our health. Stimulation to our eyes, nose, throat, and breathing infections such as bronchitis and pneumonia are all short-term effects. You’re head might hurt, you might want to puke, and you might have allergic reactions. Short-term air pollution can put people with asthma and emphysema in a worse condition. Long lasting breathing disease, lung cancer, heart disease, and even damage to your brains, nerves, livers, or kidneys are all long-term effects. If you’re exposed to air pollution continuously, it would affect children’s lungs and may complicate medical conditions for the elders. Some people argue and deny the bad air problem. They claim that pollution may actually be good for the Earth. The hazy weather caused by pollution has made plants far more productive when it comes to scrubbing greenhouse gasses out of the air. Pollution has turned plants into better carbon dioxide processing machines. But this is bad for our own health. Pollution is causing global warming which leads to massive ice land melting. Polar bears and other animals that live there are losing there habitats and even dying. Melting ice could also lead to more sea water which would bury some cities or land near the coastal areas. There is already a tremendous amount of people on this planet. If our land decreases, and our population continues to increase, some people would have to start living on another planet; therefore, making it a priority to address the areas

Negative externalities are detrimental third-party effects caused by the production and/or consumption of a good. A public good is a good provided free of charge to the consumer, by the government. A public good is non-excludable and non-rivalrous. A merit good is a good that gives positive externalities upon production and/or consumption. A merit good is non-excludable, yet rivalrous.

An externality is side effect of an action that affects the well-being of a third party. Storm shelters are an externality because not only are the owners safe but neighbors, animals, and others can also enjoy the benefits of a storm shelter. Storm shelters are a positive externality because the third party (the neighbors) gain a benefit from the shelters. The party causing the spillover from the shelter is the owners. They are allowing others to come inside and receive the benefit the shelter gives by being safe from the storm. I believe that the owners are behaving ethically by allowing the spillover because it would be wrong and unjust to deny another human shelter to help them survive an event like a tornado.

The HERO bikes was a project that resulted from using whatever was around to build a possibility for the community, in this case, the excess of bamboo that was lying on the streets. According to CBS News, "Pam Dorr wanted to be part of the solution and not the problem. Her town was invaded by wild bamboo of all things, and her local economy was on the skids". Greensboro was in need of jobs, but most of the people did not have the same creativity as Ms. Dort. The wild bamboo was a local nuisance; Mr. Dort converted this problem in jobs for the community. An externality is a result of an economic activity experienced by unrelated third parties; it can be either positive or negative. The socio-economic externality to create this project was the

External influences cover a wide variety of factors, and their influence can differ between business types. These include the following:

III. EXTERNAL ENVIRONMENT A. Societal Environment Economic Opportunities George W. Bush has been elected as the new President of the United States. One of his goals is to implement a tax-relief program that will help stimulate consumer spending (Bush). This could increase the amount of air traffic if consumers choose to spend this unexpected income on travel. This could then boost airline revenues and allow for more completed purchases on Boeing's commercial aircraft.

(C) Externalities -- Companies produce some type of external cost that affects the community. The company would not voluntarily reduce or

An Externality is when costs or benefits of certain activities spill or fall into third parties that have nothing to do with the initial situation in hand; its like a side effect or consequence of an activity that affects other parties who did not choose to incur that cost or benefit.

There is a negative externality because the smog clearly causes external damage that is inflicted upon the general public of London. The factories are not bearing the entire cost of producing their goods because they are not paying for proper waste disposal. Factories were emitting harmful pollutants into the atmosphere which has a negative social cost because it was making people ill and causing deaths.

externalities keep the market from reaching allocative efficiency because the gains or losses generated are external to the pricing system; they are unpriceable. The transaction costs of externalities misallocation of resources or a failure of the market economy to generate a Pareto optimum. positive externalities 3 types of interventions the government may engage in: