Question
Given the following examples identify whether it describes a positive externality, negative externality, or neither. Example 1: Johanna is graduating from college this weekend. Like
Given the following examples identify whether it describes a positive externality, negative externality, or neither.
Example 1: Johanna is graduating from college this weekend. Like her, individuals who earn a college degree are generally more productive and consequently earn higher wages.
Example 2: About 50% of the population of Madison have a college degree, which may help explain the city's lower overall crime levels.
Example 3: Due to higher inflation and increasing labor costs, universities and colleges across the United States have raised tuition paid by students, and thus affected more low income students.
Example 4: Because there are more people attending school, demand of teachers will increase.
Example 5: Because there are more people attending school due to the government's recent support towards higher education, Linda cannot find full time workers to help at her restaurant.
Step by Step Solution
3.43 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
Externalities An externality is something that happens as a result of an economic activity that affe...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started