Too Tired? Too Anxious? Need More Time? We’ve got your back.
Some indicative (though not exhaustive) references are given below each essay/question. You
should use more than one textbook in producing your essay (answering the question) because
some do not cover a topic as much as others and some cover the topics in different ways. You
may also wish to refer to journal articles although this is not essential. Include clear diagrams
and definitions of different concepts to increase your grade.
Question
a) During Covid-19 government in most countries invited their citizen to take a Covid-
vaccine. Explain why taking the vaccine creates an externality.
b) Describe an example of a negative consumption externality
c) Thinking about production externalities, why does an otherwise competitive market
with a negative externality produce more output than would be economically
efficient? Discuss using an example.
References: Perloff, Ch. 18; Besanko and Braeutigam, Ch. 17; Pyndick and Rubinfeld, Ch.
16.7.
Too Tired? Too Anxious? Need More Time? We’ve got your back.