Group items tagged

The exposure to second hand smoke during childhood destroyes their arteries and can lead to heart and lung damage . This smoking in parents causes lung cancer and premature death fron conditions such as heart strikes and high blood pressure. It is recommended that these parents stop smoking in order to help make the future of their children better. This consumption of cigarettes causes a negative externality as the children are affected in the near future from second hand smoke. These children whose parents smoke are more likely to smoke as well which continues the cycle of negative externalities of the co sumption of cigarettes.

This is a perfect example of negative externality of consumption. By smoking in public places, the consumer is creating negative externalities, in the form of passive smoking, for non-smokers especially children. When individuals smoke cigarettes, they are compromising their own health as well as the health of those around them who inhale the smoke. I agree with the point that another external cost can be younger children being influenced to smoke following the habits of their smoking parents. This is why cigarettes are considered as demerit goods as they cause significant negative externalities , and these are the goods that the government would like to limit consumption. Individuals may not be aware of the external costs arising from the consumption of the good because of lack of information or myopic behaviour. For the article mentioned above , it is crucial for the state to take on a paternalistic role and curtail consumption

A thriving black market has cropped up after the NSW prisons smoking ban On the black market cigarettes can cost $300, up from $28 before the ban Prison sources claim that 'an inmate fight broke out over cigarette butts' The ban on smoking in NSW prisons has reportedly led to a thriving black market, where a packet of cigarettes can go for as much as $300, while matches and papers can fetch a staggering $90.

This article has to be about the negative externalities of consumption, as it involves smoking. It affects not only the ones smoking but the others as well. Banning it in a prison can help in bringing the MSC equal to MSB. This also wont affect the tobacco industry as there is still comsumption taking place outside the prison. Banning it has a negative step, which is the creation of the black market. Prisoners are even fighting for cigarrete butts. The government / the prison authority should take a step in taking the ban away and but also making it difficult to obtain cigarettes, to avoid such brawls.

I agree that the negative externality involves non-smokers in the prison getting affected. You suggest that the ban should be taken away, wouldn't this still lead to more people smoking and causing even more second hand smoke to affect the non-smokers? This wouldn't help the situation I believe it would make it worse instead.

This article discusses the negative externalities of smoking. Second hand smoke is dangerous and poses health threats to individuals that are exposes to it. The author of the article argues that smoking should be banned in all public places to protect nonsmokers from the dangers of smoking. The author believes that smoking should be allowed in private locations, including restaurants. This is because customers and employees would be making a decision to expose themselves to the dangers of smoking/second hand smoke without impacting others.

An externality occurs when the production or consumption of a product has an effect on a third party. Although the externality that is generated can be positive, the externalities of consumption generated by smoking are all negative, and this is one of the biggest examples of a negative externality of consumption. Passive smoking poses external costs to third parties in this case children where no appropriate compensation is made.

America has been using nuclear power for electricity. Nuclear power is a cheap reliable source of energy that America has been using for many years. Nuclear power accounted for about 20% of US electricity production. Now many nuclear power plants have been shutting down because of the negative externalities that comes with it. Nuclear power plants have a lot of waste and hurt the environment. Nuclear power plants are also sometimes associated with nuclear weapons. The US is losing interest in nuclear power plants because of the negative externalities that comes with it.

Americans are having shorter lives than most other developed countrys, this shows a slow negative downfall of American health. The US report identifies obesity and the lack of health insurance for some 47 million Americans as the most significant factors in premature death. This shows negative development in health and HDI.

Chinese policy makers create barriers during trade and the US retaliates with their own just like how it was emphasized in this week's reading. One of he negatives of protectionism can destroy trading relations because countries might enact their own barriers. This practice is usually looked down upon by the WTO but the US had asked for an exception. Americans say this is because Beijing identifies as a nonmarket economy but in fact just because their policy makers make decisions based on production and consumer demand doesn't necessarily mean they are nonmarket. China being influenced by the WTO gives them an unfair advantage and can have a negative impact on US trade and investment in China.

The Russian recession has caused sales for luxury goods to drop. Many companies that sell luxury or tourism goods have seen the demand for their product significantly decrease since the recession. This is because these products have a negative income elasticity so as income decreases so does the demand for these products. The demand for tour groups and hotels has also decreased because of the recession. Since all of theses products have a negative elasticity once the income of the buyers in Russia decreases then so will the demand for them.

This article discusses the impact of the Russian recession on demand for luxury goods. The recession has decreased the income and spending power of many Russians which has resulted in a decrease in a demand for luxury goods (clothing, jewelry, etc.) and services (airfare, hotels, etc.). The demand for luxury goods is very elastic. This is because luxury goods are not necessities and consumers can survive without them. These goods often have a reasonable number of substitutes. They also require a relatively high proportion of income to be spend on them and are used over a long period of time. The Russian recession has impacted firms across the globe but especially in Europe where Russian consumers account for a large percentage of customers.

The return of the haze to Singapore has brought the predictable round of complaints, analysis, hand-wringing, and soul-searching, but the problem never seems to improve. To establish a basis for actionable intervention, it is critical to link policy solutions with evidence about the health impacts of the haze-on residents of Indonesia.

The article relates to opportunity cost and how each choice holds a negative and positive trait. In the article they spoke of soft money (paper money) and the use of species (such as gold and silver). The positive effects of soft money is that it is cheap to produce and doesn't require much material. However. The issue with soft money is that since it's so inexpensive people believe that it will cause inflation to soar. Species are valued because they are hard to find and require a lot of labor to get (more money). Taking a lot of time to retrieve and to mold into coins takes up more energy. A new idea that came to mind is digital currency. Depending on how it is used it can become a great asset or a hindrance. Overall, there are many opportunity costs all holding good and bad qualities, but the greatest is the one that benefits us overall.

In the final quarter of 2015, Britain's trade deficit worsened. The shortfall between exports and imports increased significantly between the first and third quarters of last year which added to concerns that Britain's worsening trade position will negatively impact GDP growth this year. Howard Archer, the chief UK economist at IHS Global Insight, said,"UK exports have clearly struggled in recent months, as they have been hampered by sterling's overall strength in 2015, particularly against the euro, and moderate global demand." While recent declines in the value of sterling may boost export sales, this could be mitigated due to the deteriorating global situation.

According to this article from the Deloitte University Press, the length of recovery has little to do with the probability that a recession might occur. Dr. Daniel Bachman claims that modern business cycle thought and recession data suggests that business decision makers should look elsewhere to gauge where the economy is headed. Since WWII, the average US business cycle expansion has lasted 56 months. The last three expansions have been exceptionally long and the current expansion is already longer than most of the expansions in the 1950s-70s. Therefore, it is possible that something such as a the role service in the economy has changed but the sample is small and the uncertainty is high. In fact, most economists who study business cycles do not view them as cycles. The world's first industrialized economy, the UK, suffered banking panics in 1825, 1847, 1866, and 1890 and the fact that a crisis appeared every 20-25 years suggest that there was some form of regular force at work in modern economies that lead to a cycle. However, as economists began to use statistical techniques, they discovered that the cycles in the data were probably illusions. As, a result, economists have mostly rejected the idea of business cycles repressing an inherent, regular feature of the economy. Instead, they view the economy as experiencing random shocks, both positive and negative.

This article, published by The Atlantic on 09/25/2015, describes China's participation in the cap-and-trade Carbon Credits system designed to limit global carbon emissions. Beginning in 2017, China will have a maximum level of carbon emissions that it is allowed to produce, and will be forced to pay for exceeding it.

This article concerns a company's evasion of government intervention which was aimed at reducing its polution. For this reason I think it fits nicely into what have learned this week.