Externalities recall

What is the correct definition of externalities?

• The spillover effect of consumption or production on a 3rd party

• Negative impacts on third parties

• Activities happening in the external environment

• Activities happening within the business

Externalities can be positive AND negative

• True

• False

Which of the following is NOT an example of positive externalities

• Pollution

• Vaccination

• Health Care

• Education

Which of the following is NOT a negative externality?

• Vaccination

• Pollution

• Congestion

• Environmental Damage

What is the formula for social costs?

• Social Costs = private costs - private benefits

• Social Costs = social costs - private costs

• Social Costs = private costs + social costs

• Social Costs = private benefits + private costs

Who is an example of a third party?

• Government

• Environment

• Individuals

• All of them