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.
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Script: Jonas Koblin and Jonas Jacquet
Artist: Pascal Gaggelli
Editing: Peera Lertsukittipongsa
Sound Design: Miguel Ojeda
Production: Selina Bador
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.
Read this overview on externalities by Brian Caplan.
Watch Sprouts’ video on tragedy of the commons.
Learn more about supply and demand
To view suggested classroom activities on this topic, check out our website at https://sproutsschools.com
00:44 Environmental impact
01:07 Social behavior impact
2:00 Distortion of supply and demand
02:35 Tragedy of the commons
03:01 To prevent negative externalities
03:41 What do you think?
04:13 Patrons’ credits
#economics #sproutslearning #externalities #socialcost