Chapter 3, Question 2

Externalities. How do they affect my life, and how will they in the future? Throughout this chapter Wheelan used many, many examples, but the most memorable include: The car, the houses, smoking, and the soda/fast food taxes (littering taxes in Chicago). As of now, lots of little externalities effect me both positively and negatively. Most externality effect me indirectly, and the ones that effect me directly have always been there or I come accustomed to quickly. One that effected me directly would be when my family moved years ago. I had no say in the decision, but it changed (completely) where I lived. This, for me, was a positive externality. Externalities effect every part of our daily lives but we never realize them because they occur so often. Another externality (that will soon come up in the future) will be where I go to college. It effects me directly: Where I will live, who I will become friends with, how good of an education I will get...etc. But it also effects my parents (and others, but mainly my parents): Will they move, will they retire, will they be lonely or happy as empty nesters? Their decisions and feelings will impact me. All of these are very applicable examples of externalities. Now that I know what an externality is, I will be more aware of them and how they effect my life, directly and indirectly, and positively and negatively.