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Negative Externalities: The Hidden Social Costs

In economics, an externality is an indirect cost or benefit to an uninvolved third party that arises as an effect of someone else's activity. Negative externalities can pose a fundamental problem to society. The story of Tony, a fisherman, shows what can happen when negative externalities are not internalized. SUPPORT us to make more videos on economics!   / sprouts   🐦: DOWNLOAD video without ads and background music 🤫: https://sproutsschools.com/video-less... SIGN UP to our mailing list and never miss a new video from us 🔔: http://eepurl.com/dNU4BQ SOURCES and teaching resources 🎓: Link to blog post on Sprouts website is coming soon! VISIT our website 🌐: https://www.sproutsschools.com CONTRIBUTE by upvoting your favorite topic or suggesting new ones ☑️ : https://sprouts.featureupvote.com/ THANKS to our patrons (UPDATE 15/NOV/2022) This video was made with the support of our Patrons: Andrea Basillio Rava, Angela, ArkiTechy, Artur, azad bel, Badrah, Cedric.Wang, David Markham, Delandric Webb, Denis Kraus, Digital INnov8ors, Dr. Matthias Müller-Mellin, Duane Bemister, Esther Chiang, Eva Marie Koblin, Fatenah G Issa, Floris Devreese, Frari63, Gatsby Dkdc, Ginger, Harmoniac Design, ICH KANN DEUTSCH UND ES WAR EINFACH!, Isabelle, Jana Heinze, Jannes Kroon, Jeffrey Cassianna, Joanne Doyle, Johan Klassen, John Burghardt, Jonathan Schwarz, Justin Keith, Karen Lewis, Kenneth Natvig, Khadijah Sellers, Leonel, Linus Linderoth, Liskaya, Marcel, María, Mathis Nu, Matthias Ruck, Mezes.Macko, Michael Brown, Mindozone, Natalie O’Brien, Nicki, Okan Elibol, Paul Hopkins, Peter Bishop, Petra, Raymond Fujioka, Robert Cook, Scott Gregory, scripz, Sebastian Huaytan Meder, Si, Stefan Gros, Stephen Clark, Stuart Bishop, Susan Schuster, Tetiana Gerasymova, Tristan Scifo, Victor Paweletz, Yvonne Clapham and all the others.Thank you! To join them visit   / sprouts   COLLABORATORS Script: Jonas Koblin and Jonas Jacquet Artist: Pascal Gaggelli Voice: Mithril Coloring: Nalin Editing: Peera Lertsukittipongsa Sound Design: Miguel Ojeda Production: Selina Bador SOUNDTRACKS Toys Are Alive - Studio Le Bus DIG DEEPER with these top videos, games, and resources: Listen to this EconTalk episode with Mike Mungers on subsidies and externalities. https://www.econtalk.org/munger-on-su... Read this overview on externalities by Brian Caplan. https://www.econlib.org/library/Enc/E... Watch Sprouts' video on tragedy of the commons. https://sproutsschools.com/tragedy-of... Learn more about supply and demand https://sproutsschools.com/supply-and... SOURCES https://en.wikipedia.org/wiki/Externa... https://www.imf.org/external/pubs/ft/... https://www.investopedia.com/ask/answ... CLASSROOM EXERCISE To view suggested classroom activities on this topic, check out our website at https://sproutsschools.com CHAPTER 00:00 Introduction 00:44 Environmental impact 01:07 Social behavior impact 01:32 Solution 2:00 Distortion of supply and demand 02:35 Tragedy of the commons 03:01 To prevent negative externalities 03:18 Summary 03:41 What do you think? 04:13 Patrons' credits 04:22 Ending #economics #sproutslearning #externalities #socialcost