External Benefits

Question 1

List external benefits

Answer 1

Education
Military
Healthcare

Question 2

What’s makes them under consumed and undervalued?

Answer 2

The free market

Question 3

How does education help?

Answer 3

Brings in greater economy

New knowledge to help society

Question 4

How is education not good

Answer 4

Not everyone needs it, wasted money
University overrated
Learn better elsewhere
Takes time to see value

Question 5

What does congestion charge do?

Answer 5

Discourages unnecessary traffic into dense cities

Question 6

Pros of congestion charge

Answer 6

Inelastic

Encourages people to go green

Question 7

Cons of congestion charge

Answer 7

Difficult to put value on
Penalises business travel
Lower income hit worse

Question 8

What is a pollution permit

Answer 8

Firms have a pollution permit so don’t pollute as much

Question 9

Pros of pollution permit

Answer 9

Fines offender

Reward for going green

Question 10

Cons of pollution permit

Answer 10

Big firms pay the fine easily
Takes time to go green
Penalises business growth

Question 11

What are external benefits

Answer 11

Are consuming something that benefits a third party of to society as a whole