Archive for the ‘2.4 Market Failure’ Category
The Pope against condoms – trying to increase the gap of the positive externality?
Posted by: 11cresma on: April 26, 2010
The Pope and the Vatican is strongly opposed against the use of condoms, and thus because of problems with the religious ethics (see Article). For instance, Catholic religion “steadfastly opposed to the use of condoms for any reason.” Nevertheless, the use of condoms is a positive externality of consumption as shown on the diagram below. [...]
Externalities: Boredom fuels teen alcohol use
Posted by: 11cresma on: February 17, 2010
When teenagers are bored and alcohol is cheap, people choose to drink in order to fight the boredom. They use alcohol as a form of entertainment, as would be going to the movie theater or shopping. The major problem with teens drinking is not only that they may develop an addiction to alcohol, but also [...]
Tags: externalities
