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There are unintended side effects of some market activities. In these cases, the market price does not reflect all relevant costs and benefits. We call these instances externalities. Pollution is one example of an externality. Please use the following questions to describe an instance where you, an acquaintance, or family member has experienced an externality.

1. How did it affect you (or your acquaintance or family member?) Please explain.

2. What were the effects? Please explain.

3. Did you (or your acquaintance or family member) experience decreased health or quality of life? Please explain.

4. Suppose that you (or your acquaintance or family member) work at a business that does pollute. Do you think that the pollution should be cut back? Explain

5. Based on your own experience and what you have learned in Unit 4, what is the best way to control pollution?

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