Tasks for Original Posting: In your original posting, address the following questions: 

1. How do externalities apply in this situation? 

2. Who faces the third-party problem? 

3. Who has the incentive to clean up the air? 

4. How might the insights from this article inform government policy with regards to healthcare? 

This article from the BBC discusses the various health and social consequences of air pollution. Melissa Hogenboom, "How Air Pollution is Doing More Than Killing Us," BBC, April 16, 2019: http://www.bbc.com/future/story/20190415-how-air-pollution-is-doing-more-than-killing-us

 

 

Answer rating: 100% (QA)

Externalities in the context of air pollution refer to the costs or benefits that are imposed on third parties who are not directly involved in the pr... View the full answer