externalities


Read Chapter 13 from the text and the article, Should We Tax People for being Annoying? in the shared documents or at https://www.nytimes.com/2013/01/13/magazine/should-we-tax-people-for-being- annoying.html?_r=1

Watch the videos:
The Economic Lowdown: Externalities at https://www.youtube.com/watch?v=57GTMN4Zxkw (approx. 6 minutes)

Making Sen$e at https://www.pbs.org/newshour/show/economic-options-combatting-climate-change(8:22 minutes).

Listen to the podcast, Air Pollution Explainer: Whats an Externality? at https://www.marketplace.org/2013/12/09/sustainability/air-pollution-explainer-whats-externality (approx. 2 minutes).

Your writing prompt should be based on the concepts of the videos, podcast, article, and chapter 13 of the text.
This paper should have at minimum 5 paragraphs and be related to the text and media. All of the supplemental media must be incorporated in the writing prompt.
Markets with externalities are important cases in which free markets fail to maximize social surplus. Make sure you have minimally discussed the following:
specific negative or positive externalities that interests you NOW; o what are the potential benefits and/or costs to society?
o could the externality have both a cost and a benefit?
the differences between the private benefits and costs and the social benefits and costs;
can the government play a role in improving market outcomes in such cases;
should the government play a role in improving market outcomes in such cases (normative
discussion)?

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