What are Externalities? | Principle of Economics | From A Business Professor

Description

Imagine you’re deciding whether to drive to work or take public transportation. Or maybe you’re a factory owner looking for ways to cut production costs. What you might not realize is that your decisions can have broader impacts on the people around you—affecting air quality, traffic congestion, or even the well-being of others. In economics, these ripple effects are called externalities. Today, we’re diving into the fascinating world of externalities—what they are, how they impact society, and why they matter in everyday decisions made by businesses, individuals, and governments. By the end of this video, you’ll see how externalities shape policies and markets in ways you may have never noticed.