External effects and standard of living

External effect
Standard of living
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EconomieMiddelbare schoolvwoLeerjaar 3

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External effect
Standard of living

Slide 1 - Diapositive

Slide 2 - Vidéo

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

Slide 3 - Question ouverte

What are reasons that the production of soybeans isn't exactly environmentally friendly?

Slide 4 - Question ouverte

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 soybean
Erosion of land
biodiversity decreases, certain animals become extinct
Soy is needed as food for kettle --> meat industry causes a lot of CO2 emissions


Slide 5 - Diapositive

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)

Slide 6 - Diapositive

Costs to society
The price of a ticket reflects the business costs:
staff, kerosine, landing permitt, maintenance

The costs to society (increasing health care costs)
are not included in the price

Slide 7 - Diapositive

What are the external effects of consuming products like cigarettes

Slide 8 - Question ouverte

Think of another example of an external effect

Slide 9 - Question ouverte

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

Slide 10 - Diapositive

Standard of living decreases
Price petrol increases --> supply of oil decreases
gas and electricity more expensive --> supply of gas decreases
Increase price level groceries
Government: 
Lowers tax on gasoline and diesel (April)
Lowers VAT (BTW) on energy from 21 % to 9 % (July)
Raises allowance energy low income groups (€ 800) 

Slide 11 - Diapositive

Causes price increase groceries
Price increase energy --> greenhouses/ factories
Shortage of containers on ships --> price increase
Price increase petrol
Shortage labourers greenhouses/ factories --> increase wages
Price increase materials --> grain/ carton packaging


Slide 12 - Diapositive

Production in Ukraine
Grain --> 25 % of total grain production
Poor countries buy 60 % of their grain from Ukraine
Large producer of maize, sunflower oil and cement

Slide 13 - Diapositive

Exercise 1 - 5


Go to work

Slide 14 - Diapositive