Participate in a discussion regarding positive and negative production externali

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Participate in a discussion regarding positive and negative production externalities in your life as shown in Section 10.1 in the textbook. In your day-to-day life, do you think you experience the right amount of incentives that attempt to align your self-interest with the social interest? For example, typically we respond to the gasoline tax by buying a little bit less gas than we otherwise would; however, this incentive is small compared to the United Kingdom’s. With a larger gas tax, people there find ways of getting by with smaller quantities of gasoline. Another incentive of an externality is government-subsidized tuition, which encourages more people to enroll in college and produces the benefits of a well-educated society. As a citizen-voter, do you think the gas tax be higher to discourage the use of automobiles? Should tuition be lowered to encourage more people to enroll in college? Or are these incentives just about right in the social interests?

 

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