Chapter 6.3 external effects

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Economics

Standard of living

External effects

Standard of living

Standard of living

The degree to which people are capable of satisfying their need for scarce products and services. 

= welvaart

Standard of living

The degree to which people are capable of satisfying their need for scarce products and services

Depends on:

Income --> higher income, higher SOL

Prices --> lower prices, higher SOL

What is the reason we are such
a big importer of soybeans

Name a reason why the production
of soybeans isn't environmentally friendly

Reasons

Forests disappear in Southern America to create soyfields --> less absorption of CO2, less oxygen

A lot of water is required for the production of soybeans

Erosion of land

Transport of soybeans halfway around the world

biodiversity decreases, certain animals become extinct

Soy is needed as food for cattle --> meat industry causes a lot of CO2 emissions

External effects

A side-effect of the market (consequence of the supply or demand for which nobody pays)

External effects Aviation:

• Noise
• Pollution--> CO2 emissions
• Effects the health of citizens near the airport (negatively)

Costs to society

The price of a ticket reflects the business costs:

staff, kerosine, landing permit, maintenance

The costs to society (increasing health care costs)

are not included in the price

Name a positive and a negative external effect of using public transport