Externality

The aim of a traditional building project is to complete the development as cheaply as possible. There are certain rules and standards which must be observed but to win a contract and then complete it profitably, the only other considerations are economic. This is not an unreasonable situation: we all have to eat and the market economy appears to be the least bad way of fulfilling this need. However, the situation is causing considerable problems for the wider environment; so much so that it is…

4. Ghana faced a severe flood that was caused by sewage drains being clogged by plastic bags, killing at least 150 people. These plastic bags serve as a concrete symbol of the spending spree Ghana’s rising consumer class has been on over the last decade. Since, Ghana lacks the infrastructure to support the garbage from the increase in spending, the country suffers multiple day blackouts and multiple hour traffic jams, which has stunted the projected growth of the country to only 3.5% this year,…

benefits to the community. Corporations just follow their instinctual nature. Bakan in his writings mentions a notable businessman Robert Monks who compares the corporation to a shark. Essentially, Monks discusses how a corporation is prone to make externalities because it is built and set up to do so, just like a shark is a killing machine. It is in both the corporation and the shark’s nature to do what it is intended to do, there is nothing wrong with either of the two actions. It is basically…

that is common. Some areas have heavier congestion than others. Externalities are associated with various areas in the economy including congested roads. The answer to this question will focus on externalities associated with additional individual's driving on a congested road. This question will also give some ideas on how tolls may help alleviate this externality, where tolls are not helpful, and how they may be set. Externalities in the field of economics are either positive or negative…

negative externality, as each course of antibiotics reduces the overall effectiveness of the drugs and contributes to the rise of antibiotic-resistant bacteria. This paper attempts to estimate the negative externality associated with antibiotic prescriptions, especially when they are needlessly prescribed. Further, this paper attempts to estimate the impact of moral hazard associated with health insurance on the over prescription of antibiotics. Keywords: Health, Antibiotics, Externalities,…

Society has become obsessed with the idea of consumption however, if you knew its effects, you might not want to buy these things. These are known as externalized costs. By purchasing the same products repetitively, the consumer encourages the corporation to mass produce in order to keep up the supply for the demand. This entices the companies to create shortcuts which ultimately lead to the externalized costs that the consumers indirectly pay for. Without realising it, consumers pay for costs…

Externalities affect parties who did not choose to participate in the original transaction. There can be both positive and negative externalities. What first comes to mind as a negative externality is pollution and damage to the environment from say a production plant, dangerous chemicals getting into the water or air. The people who live around the…

Development of road transport has brought several advantages. It made people to save time, trade scarce resources and even travel the areas that could not be explored before. However, it is also clear that road transport causes several external costs simultaneously. External cost is the cost of adverse side-effects that all production and consumption of services produce and the producers are not obliged to pay for. (Persson and Ödegaard, 1995) The main external costs related to road transport…

External influences are people, places, things, or events that have an impact on your life. Sometimes they may be significant, or sometimes they may be small things, such as seeing your kids after school. Regardless, they are all around us, and impact our daily lives. External influences can either have positive or negative effects on us. In the article Talking to Our Devices, there are multiple examples of both positive and negative external influences. A positive external influence that we…

Institutions and the resource curse - Halvor Mehlum, Karl Moene and Ragnar Torvik In the article ‘Institutions and the resource curse,’ Mehlum et al. (2006) contend that the key to explaining the paradoxical result - which often associates natural resource richness with lower economic growth - lies in the condition of a countries institutions. They assert that institutional quality is a barrier, restricting natural resources. Such resources should theoretically increase the wealth of nations…