Externality
(a) What is externality? What is the economic impact of an externality?
Externalities issue is important, not only involves a moral issue but also involves economic issues in terms of resource utilization and external cost impact of positive and negative such as the cost of treatment and other costs.
Definition | Source | In economics, an externality, or transaction spillover, is a cost or benefit that is not transmitted through prices or is incurred by a party who was not involved as either a buyer or seller of the goods or services causing the cost or benefit. | Wikipedia | In economics, an externality is defined as a cost or a benefit stemming from a transaction that affects various third parties who are not part of the transaction. | Wisegeek | Define externality as cost or interest from a market transaction that not imposed any price. It refers externality occur effect to third personnamely other than seller and buyer. Cost or interest discounted inproduction (seller) or usage (buyer). | Hyman (2002) | Eksternaliti is activity some party (household or firm) influence utility possibility or other party production without incurred cost. | Brodway (1979) |
The implication are as follows: * Party which produces the effect has no incentive to take if, whether the effect benefit of prejudice party influenced. * Party thet influence might be using total resources that is inefficient in conducting their activity.
Economic impact of externality | Positive externality | Negative externality | Explanation | Also called beneficial externality, external benefit, external economy, or Merit goods. | Also called external cost or external diseconomy. | | External mold which brought good effect result economic activity which is being carried out by a firm. | Extenal mold that harmful result economic activity which is being carried out by a firm. | | Similarly, if too many positive externalities fall outside the participants in a
Externalities issue is important, not only involves a moral issue but also involves economic issues in terms of resource utilization and external cost impact of positive and negative such as the cost of treatment and other costs.
Definition | Source | In economics, an externality, or transaction spillover, is a cost or benefit that is not transmitted through prices or is incurred by a party who was not involved as either a buyer or seller of the goods or services causing the cost or benefit. | Wikipedia | In economics, an externality is defined as a cost or a benefit stemming from a transaction that affects various third parties who are not part of the transaction. | Wisegeek | Define externality as cost or interest from a market transaction that not imposed any price. It refers externality occur effect to third personnamely other than seller and buyer. Cost or interest discounted inproduction (seller) or usage (buyer). | Hyman (2002) | Eksternaliti is activity some party (household or firm) influence utility possibility or other party production without incurred cost. | Brodway (1979) |
The implication are as follows: * Party which produces the effect has no incentive to take if, whether the effect benefit of prejudice party influenced. * Party thet influence might be using total resources that is inefficient in conducting their activity.
Economic impact of externality | Positive externality | Negative externality | Explanation | Also called beneficial externality, external benefit, external economy, or Merit goods. | Also called external cost or external diseconomy. | | External mold which brought good effect result economic activity which is being carried out by a firm. | Extenal mold that harmful result economic activity which is being carried out by a firm. | | Similarly, if too many positive externalities fall outside the participants in a
References: 1. http://en.wikipedia.org/wiki/Externality 2. http://www.wisegeek.com/in-economics-what-is-externality.htm 3. http://www.hks.harvard.edu/nhm/notes2006/notes8.pdf 4. http://www.ukm.my/hairun/EX2153/kuliah4.pdf 5. http://wargamarhaen.blogspot.com/2012/06/bersih-30-pemedih-mata-3-kali-lebih.html 6. http://minda-hijrah.blogspot.com/2012/05/bersih-30-kerugian-pdrmsia-rm18-juta.html 7. http://ebeep.net/peniaga-kemuka-laporan-kerugian-ekoran-perhimpunan-bersih-3-0.html 8. http://www.malaysiandigest.com/bahasa-melayu/44688-lega-rakyat-bagi-dana-bayarkan-kerugian-bersih-30.html 9. http://ms.wikipedia.org/wiki/Perhimpunan_Bersih_2011