Question

Are the following positive or negative externalities? Explain.

A. Students holding onto library reserve books over the time limit

B. Smoking on campus expos students to secondhand smoke

C. College graduates add to the nation’s supply of skilled workers and add to productivity

D. Biotech firms invent new medicines

E. Using energy-saving light bulbs reduces the pollution from electricity-generating plants

F. Pop-ups and spam

Answer 1

A) negative externality because holding books over time will harm other students who could have  studied

B) negative externality. Due to smoking, campus gets negative externally

c) Positive externality when students graduates more or college graduates increases, nations supply of skilled workers increases which increases the productivity of the economy and thus hinders growth of the economy growth along with many indicators which are some positive impact from the graduates.

d)positive externality because it will lead to benefit many patients

e) positive externality

f) negative externality