Final answer:
Externalities come in two types, positive and negative. Positive externalities (external benefits) occur in activities like reducing pollution, property enhancement, obtaining an education, developing technology, and receiving a flu vaccine. Negative externalities (external costs) arise from activities like overfishing and cigarette smoking in non-smoking areas, while playing a single-player game and eating a cookie generally have no externalities.
Step-by-step explanation:
An externality is a cost or benefit resulting from an activity or transaction that affects an otherwise uninvolved party who did not choose to incur that cost or benefit. Here's how the activities listed are associated with externalities:
- a. Playing an addictive single-player cell phone game such as Happy Fish - No externalities: This activity largely affects the individual playing the game and does not have a direct impact on others.
- b. Reducing pollution - Positive externalities: Reduction of pollution benefits the whole society by improving health and reducing cleanup costs.
- c. Enhancing the aesthetic appeal of a property in a residential neighborhood - Positive externalities: This can increase the value of surrounding properties and improve the neighborhood's overall appeal.
- d. Overfishing - Negative externalities: Leads to depletion of fish stocks which affects others who rely on fishing for food or livelihood.
- e. Obtaining an education - Positive externalities: Contributes to raising the standard of living and can positively affect the society through various spillover benefits like reduced crime rates.
- f. Developing a productivity-enhancing technology - Positive externalities: Boosts efficiency and could increase productivity in various industries, benefiting the wider economy.
- g. Eating a delicious cookie - No externalities: This is a personal enjoyment with no direct effects on others.
- h. Cigarette smoking in a non-smoking section - Negative externalities: Second-hand smoke can harm others' health and wellbeing.
- i. Receiving a flu vaccine - Positive externalities: Not only protects the individual but also reduces disease spread, benefiting the whole community.