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Chapter 17 Externalities

Chapter 17 Externalities

Author: Matthew Lonn

Students will examine positive and negative externalities.

Students will understand the difference between marginal social cost and marginal social benefit.

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Questions you should be able to answer after the lesson.

What is a negative externality?

What is a positive externality?

What are some real life examples of each?

How do I draw a Marginal Social Benefit curve?

How do I draw a Marginal Social Cost curve?

How do governments create socially optimal levels of positive and negative externalities?

Chapter 17 Notes

Negative Externalities

Positive Externalities

Externalities Examples