Question

Externalities are not just a theoretical topic that economists refer to for fun. They happen every day around you. In this assignment you will find a news article written within the past year that discusses the ramifications of either a positive or negative externality. You will submit the following:

A link to a news article that discusses the ramifications of either a positive or negative externality.

A paragraph summary of the article.

An explanation of the externality shown in the article.

Grading: This assignment will be graded out of 8 points. 1 point for identifying the article, 3 points for the summary, and 4 points for the explanation of the externality.

Complete the assignment by filling in each of the required elements below.

Title of and Link to article:

Article Summary:

Explanation of externality in article:

Answer 1

Article name : Taxes on tobacco, alcohol and sugar really do curb vice

Summary of article: Tobacco , alocohol and other products which are socially undesirable should be taxed by the government as Sin taxes where people are using these products and getting lost of negative effects like health issues, death at a very young age. The government should impose these taxes and ask the people using these products to pay additional taxes.

Pros of using these products are that government spending decrease on Medi care and also no need give pensions. Government will earn lot of amount as people buy and consume them at high costs at a higher rate.

Cons: These are undesirable products which should not be used by the public as these not only effect the individual but also the people surrounding them.

So taxes are to be levied on these products.

Explaination of externality: There is a negative externality because of use of these products.

Tobacco not only effects the person using it but also effects the people surrounding them as they inhale these smoke and also pollute the air.

Alcohol and drugs usage not only effect the people who are using it but some time people due to high usage of these content will do accident which is having negative effect on life of other person.