Externalities: Social Benefits and Social Costs

Have you ever considered if your purchases have effects on others? There may be costs or benefits you're not considering!

Concept: Negative Externality and Positive Externality

11m

Concept: Externalities on the Graph

15m

Problem: Which of the following is an example of a positive externality?

3m

Problem: If the production of a good causes a negative externality, then the social-cost curve will lie ________________ the supply curve, and the socially optimal quantity is _________________ than the equilibrium quantity.

4m

Problem: Which of the following is true about externalities?

3m