Mentioned above, take a positive externality or a negative externality and explore it in detail.

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Nov 6, 2022


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The paper must use at least three disciplinary sources but not necessarily peer-reviewed sources.
Students may use their textbook as a source, but it will NOT count as one of the three required sources.
Wikipedia, other “pedias,” and videos are not disciplinary sources
Short Paper # 2 must include at least one graph included in the body of the paper (though you may use
more), a proper cover page, a references page, table of contents and abstract, have proper APA format
throughout the paper (proper margins, proper fonts, page numbers, proper citations), and must be the
equivalent of 4 written pages of text using APA properly formatted writing. The cover page, references
page, any appendices, table of contents, abstract and graphs larger than 1/3 of 1 page do not count
toward the 4 pages of written text. The paper will automatically be evaluated for originality by
Blackboard SafeAssign. You will find it helpful to review Prof. Battista’s handout “Writing in Economics
using APA and Visual Aids: Some Helpful Hints.”
Try as we may, whether economies have markets that are laissez faire, loosely or tightly regulated, or
whether the government is the major decision maker, markets do fail. That is, they fail to register the
appropriate/proper/efficient prices and quantities in the marketplace. Costs and/or benefits may, in
some markets, spill over onto people outside of the market transactions – thus, the externality. Some
are positive (my neighbor who lives to the left of me, has a flower garden that improves my quality of
life and he’s done all the work) and some are negative (my neighbor to the right of me lowers the
quality of my life with the two broken down cars he keeps on his front lawn). Noting what has been
mentioned above, take a positive externality or a negative externality and explore it in detail. Examine
the role of social costs and benefits, private costs, and benefits, what role, if any, can the government or
even the private sector play in correcting the externality, is there a free rider problem associated with it
and can it be corrected? As we attempt to correct for the externality what additional tradeoffs may the
private and/or public sectors make? You should use graphs to help reinforce and bolster your argument


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