1 / 5

Economics

Economics. Externalities and Free Riders. Externalities. Externality—unintended consequence of economic behavior. Positive Externality—good for society. Negative Externality—not good for society. What are positive and negative externalities associated with mandatory school attendance?.

bijan
Download Presentation

Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economics Externalities and Free Riders

  2. Externalities • Externality—unintended consequence of economic behavior. • Positive Externality—good for society. • Negative Externality—not good for society. • What are positive and negative externalities associated with mandatory school attendance?

  3. “Free” Rider • “Free” Rider– anybody who gets to enjoy the benefits of an economic activity without actually bearing the cost. • Problem with a “free” rider? • Everybody else has to pay more than fair share • Less likely to take ownership/care of the item • Access to “free” rides lowers productivity of the individual in some cases. Watch video-first two minutes What are some free rider examples in our society?

  4. Government and Free Riders • Usually businesses don’t produce items that aren’t mutually exclusive (if I use it then you can’t). Government usually steps up to provide those essential things that are a benefit to all but wouldn’t be provided otherwise (Example-national defense).

  5. Video Assignment • 3-4 people in a group • Create a video OR a storyboard for a video. • Video must: • Define Free Rider and Externality • Provide an example of a free rider and an Externality • Provide a possible solution to the free rider problem presented (Example, in the video example instead of using an alarm clock anybody could hear, you might just use headphones) • Be high quality and make sense • Use all people in the group.

More Related