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What Is an Externality? What Are Two Examples of Externalities

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Essay

What is an externality? What are two examples of externalities? Why is public policy making often concerned with externalities? How might policy makers encourage activities with positive externalities and discourage activities with negative externalities?


Definitions:

Antisocial Personality Disorder

A chronic psychological disorder defined by an enduring habit of neglecting or violating other individuals' rights.

Executive Functions

Cognitive processes including planning, working memory, attention, problem-solving, verbal reasoning, inhibition, mental flexibility, task switching, and initiation and monitoring of actions.

Temporal Lobes

Regions of the cerebral cortex located beneath the temples on each side of the brain, involved in processing auditory information and encoding memory, among other functions.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, decision making, and controlling behavior and emotions.

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