There are no end of examples of externalities. For example when one builds a home, there are costs incurred on society such as schools, police, roads, etc. that are not completely (actually only minimally) by the developers. But on the flip side having a snow blower in the winter has positive externalities (assuming the owner loans it to the neighbors). Above is the best video I can find find explaining externalities.
This is a blog site created by two high school teachers of economics to help ourselves and other similar content teachers teach both the content and integrate technology into the classroom.
Saturday, December 6, 2014
Externalities
There are no end of examples of externalities. For example when one builds a home, there are costs incurred on society such as schools, police, roads, etc. that are not completely (actually only minimally) by the developers. But on the flip side having a snow blower in the winter has positive externalities (assuming the owner loans it to the neighbors). Above is the best video I can find find explaining externalities.
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