36 | Benefits For Bystanders
A positive externality occurs when consuming or producing something results in a benefit to a third party.
Today on the show, we visit a company called Monoprice. And we go into a room where people sit all day and try to make stuff get cheaper.
Why should nature be taken into account when looking at the economy as a whole? A Bee's Invoice uncovers and incorporates the hidden value of natural capital in the measurement of our economy.
In this Economics Made Easy video, we talk about the history from where we started to where we are today, because of the economic boom of wealth in our modern society.
Designer Thomas Thwaites explains what compelled him to build a toaster, literally from the ground up.
I spent 6 months and $1500 to completely make a sandwich from scratch. Including growing my own vegetables, making my own salt from ocean water, milking a cow to make cheese, grinding my own flour from wheat, collecting my own honey, and killing a chicken myself.
Today on the show, we visit a company called Monoprice. And we go into a room where people sit all day and try to make stuff get cheaper.
If Art sells potato chips to Betty, both Art and Betty are happy with the transaction. Betty has chips, and Art has been paid for them.
If Art sells potato chips to Betty, both Art and Betty are happy with the transaction. Betty has chips, and Art has been paid for them. If Betty eats her chips loudly and it irritates Carl, then Carl bears a cost because of Art and Betty's transaction. Carl didn't have anything to do with the sale of the chips, but now he has to listen to them crunching. The cost Carl bears is called an externality. It is a cost that affects someone outside of the transaction. Prof. Michael Munger explains how externalities can arise and some options for resolving them
Why should nature be taken into account when looking at the economy as a whole? A Bee's Invoice uncovers and incorporates the hidden value of natural capital in the measurement of our economy.
Judge quashes order to repaint London house, in win for property developer who denied choosing colour scheme out of spite
Judge quashes order to repaint London house, in win for property developer who denied choosing colour scheme out of spite
This website is an excellent guide to understanding externalities.
Externalities are a form of market failure. Externalities are defined as the spillover effects of the consumption or production of a good that is not reflected in the price of the good. For example, the production of steel results in pollution being released into the air, but the cost of the pollution to the environment is not reflected in the price of steel.
One day it's profitable to recycle a bottle. The next day, some number in the global economy changes and that bottle suddenly becomes trash. The line between trash and recycling is moving a lot these days. For a bunch of reasons, it's a tough time to be a recycler.
What do banks do with our deposits? You think that banks are where your cash is stored and safeguard and that a dollar bill is money. Well, you’re wrong. Like, really wrong.
What is the real value of a dollar? You think that a dollar bill is money and that banks are where your cash is stored and safeguarded. Well, you’re wrong. Like, really wrong.
Three short stories about putting a price on something hard to value precisely. We go from $4.66 under a pillow all the way up to $1 trillion across every inch of highway in America
That may seem like a really simple question, but it’s actually kind of complicated. Paper bills and coins, or currency, is obviously money. But it doesn’t end there.
This advanced level paper, by Michael Huemer, discusses and compares various theories of economic value.
Prof. Steve Horwitz addresses the common belief that the world is running out of natural resources. Instead, there are economic reasons why we will never run out of many resources
Over the course of the three months, 145 levees would fail, and 27,000 square miles across ten states were put underwater.
Discussion question to ask students: How is managing the Mississippi like managing the whole society? How is it different?