Externalities revision

As a light-hearted test of do you get negative externalities have a look at the following and explain what is the negative externality:

http://www.criticalcommons.org/Members/jtierney86/clips/the-big-bang-theory-negative-externalities-of-a

The key with negative externalities is explaining the third party effect and to what extent you can place a financial figure on the external cost. This problem is with missing information, in identifying the size of the external cost, is a key debating issue.

Be careful in ensuring you focus on negative external costs of production as explained in this following Tutor2u clip:


https://www.youtube.com/watch?v=nW0Gl_CFoJU

Finally negative externalities have macro implications - so worth taking a look at this TED talk, thanks to Louis Rifat for passing on:

https://www.youtube.com/watch?v=J9_Xc9wxByM

For positive externalities of consumption - take a look at the following clip:

https://www.youtube.com/watch?v=U8qDf5jg92w