Externalities

Question 1

External costs means

Answer 1

A negative effect to a third party from the production or a consumer good

Question 2

5 examples of negative consumption

Answer 2

1. Vehicle pollution
2. Household waste
3. Noise pollution from neighbours
4. Air pollution from smokers
5. Traffic congestion

Question 3

External benefits

Answer 3

A positive effect to a third party from the production or consumption of a good

Question 4

3 external benefits of education

Answer 4

1. Getting a job
2. If people are educated they can open a business like hotel, restaurant, shops which can satisfy people’s wants and needs
3. Literate rate

Question 5

Vaccinations

Answer 5

Vaccinations create external benefits because when one person gets a flu shot that reduces not only the probability that they’re going to get flue but also other people want get it too