Externalities: Lifts A Necessity?
Recently there has been mixed feelings about the new housing blocks upgrading scheme introduced by the Singapore government, one of the most popular topics is the upcoming new lifts that stops on every level. However, this is not implemented in every residential area, which is a controversial topic among Singaporeans.

The objectives of these lift upgrades is a part of a broader exercise to help struggling small- and medium-sized contractors get through the worsening recession by offering them a range of projects, each valued at S$50million or less.

This is an externality because it does not only benefit the contractors, but also the people living in the residential blocks, where the lifts are to be upgraded. These positive externalities, also known as external benefits, are applicable to this, for a few reasons.

Residents experiencing mobility difficulties, like the elderly and the less fortunate, can have some relief from constant climbing of steps to reach their homes. Lifts on every level will help elderly to ease the tension from their bodies and reduce the friction between joints. While, on the other hand, help disabled personnel to reduce the risk of injury whie navigating the stairs.

Another reason is the convenience of the lift. For example, a resident requiring medical assistance needs to be rush to the hospital in the shortest time possible, medical personnel would be able to use the lift. This will reduce the time needed to reach the hospitial, as compared to going down the steps of the stairs. The introduction of lifts on every level will shorten the time at least by half.

In addition, if a resident requires moving bulky or heavy items, it would be much easier to transport the items with lifts on every level. This will help reduce the risk of injury while carrying it up and down the stairs.

Before the government decides to introduce this scheme, the lifts are not accessible to every level. It causes inconvenience to the residents as they still need to climb a certain number of steps before actually reaching their houses.

However, there are negative externalities too. For one, during this upgrading of lifts, the construction has cause significant inconvenience for the residents living in the areas, as one of the lifts has to be condone off for upgrading.

The remaining working lift would have to cater to the residents in the block, and they would need to wait longer for the lift during the peak hours and busy periods. If the working lift were to break down, residents living on the higher levels will be the ones affected the most as they have to walk down the stairs.

Adding on to it, the construction will cause much noise and disruption during the upgrading period, and also dust and dirt would travel into the resident’s apartment thus causing the home to be dirty and it will spark off health problems especially the elders and those with asthma. The hygiene in environment is also affected as rats and roaches are a common sight in the vicinity of the construction.

After the lifts are upgraded, the lifts may be abused too. Here are some examples, a child urinating in the lifts due to urgency, graffiti by teenagers, people may hog the lift too as a result of its convenience, and people would not be able to have a chance to use it.

In conclusion, I feel that it is a necessity, as it is for the greater good that we look after the less fortunate and people who need help.

Janell Tan T01

Labels: externality

An example of negative externality is over usage of CFCs - chlorofluorocarbons.

CFCs are used in refrigerants, air conditioners, propellants for aerosols, for generating foamed plastics like expanded polystyrene or polyurethane foam, and as solvents for dry cleaning and for general degreasing purposes.All the CFC products are invented to improve standard of living of people and it also benefits people. For example, refrigerants give people the benefit to drink cold water and air conditioner cools people.However, these products cause negative impact to the earth. CFC causes damage to the ozone layer resulting in the depletion of the ozone layer.

THYELENG

Labels: externality

Retail
There are positive externalities in beauty and fashion such as

In beauty and fashion, Singapore is the dream shopping destination for High Net Worth Individuals. With many international lavish brands such as Louis Vuitton, Hermes, Salvatore Ferragamo and Chanel having chosen to invest in Singapore, such individuals with high purchasing power will still remain in motion despite the current economic downturn.

This shows that despite the poor economic outlook, the retail sector has proven profitable in Singapore, in fact, there still remains strong growth especially in the beauty and fashion sector.
We can assume that this growth is due to a mindset shift in 'preference of local consumers towards premium goods' thus the flourishing retail scene. With new shopping malls being built, such as the Illuma and ION Orchard, together with 'international retailers entering the local arena' is evidence of the assurance they have of the Singapore market.


Thanks
Halena Fonseka

The presence of numerous sales promotions and financial cards privileges aid in encouraging consumer expenditure such the uniquely Great Singapore Sale which is a favoroed event among the locals and a somewhat attraction for the tourists. On top of the upcoming establishment of the IR's, the establishment of integrated resorts, spending power of tourists and locals will expose the prospects the local retailing scene holds.

Labels: externality

One of the externalities in Singapore will be the “recent” Formula one race held in the central area of Singapore. It was said that the night race has attracted more than 40,000 foreign visitors and generated 168 million sing dollars.

Why is it an externality?

The sole benefiter of the event should only be the organizers of F1. (Who are selling the tickets) However hotels and other sectors nearby benefitted from the event.

External benefits (Positive externality)

Shopping centres near the F1 race will have an increase of sales due to the increase of crowd in that area. Food courts/restaurants in the shopping centres will earn more as tourist and viewers will have their dinner before going for the event. Several hotel suites offering a view of parts of the track priced from 8000 Singapore dollars a night. Hence there will be an economic surplus for the hotels as they do not get to charge their customers at this rate during usual days. In addition, it was told that alcohol was expected to increase at least 50% in sales during F1 weekend. This is because alcohol(compliment) are being bought by people while viewing the event and hotels are offering champagne and wines to customers who have booked suites for viewing of the F1 race. All these are under external benefits, as hotels benefitted from the event even though they did not pursue the event.

External cost (negative externalities)

Due to this event, road blocks were being set up; public transports were being diverted away from the event venue. As the event was held at the central area of Singapore, people who work there and even people who are just passing by will have to take two busses instead of the usual one as roads were being closed, as a result individuals will have to spend more on transportation so as to reach their destination. Cars need to take more detours; as a result more oil is being spent on going extra miles. Thus this affect resources allocation, money that could be spent on other things were being spend more on transportation for individuals. Because of the blockage of roads near the event venue, many other roads will be conjested as a result, traffic will be slow, and individuals might end up late for work and hence individual has to pay for the cost of being stuck in a traffic jam. The cost may come in the form of money (those who are paid on a hourly basis), energy (the need to wake up earlier so as to get away from the congestion) and many other factors.

Jonathan Lau

Labels: externality

Playing music loudly

Externality is the external benefit or cost to people around the primary consumer arising from an activity, in this case playing music loudly. Is it boon or bane?

Benefit/ Boon

Your neighbor on one side could be your contemporaries and enjoy the same music genres as you; hence they will appreciate and enjoy the music that you play. They would not have to switch on their radio nor tap on any electrical source to get the music. For these people, they are getting what we call a “free lunch”. Another place where loud music may have a positive externality is the park. When you go to the park and play some music to accompany your exercise regime, people in the park who are also exercising would also be able to benefit from it.

Cost/ Bane

Your neighbor on the other side may require some peace and quiet to take an afternoon nap, to revise for an exam, or to watch television etc. Alternatively, they may prefer soothing music such as baroque over heavy metal. Loud music contributes to noise pollution. It affects the serenity of the environment, posing problems to people around its source. In places like the library, patrons are encouraged to preserve silence so as not to disturb others. Getai cannot play loud music after 11 pm. Hearing loud music over a prolonged hearing can result in negative effects such as loss of hearing to the user and others. Some commuters on public transports tend to turn the volume of their mp3 players to the maximum such that it is audible to passengers around them, which can be a nuisance and irritant.

Bryan WWZ T01

Labels: externality

Improving the economy
There are externalities in the a situation of trying to improve the economy, be it positive or negative. Externalities are known as external effects, often unforeseen or unintended, accompany a process or activity.

Positive:
In this unstable economy right now, many countries, governments and companies are doing their best to improve the economy. The fact that they are trying their best to improve the economy, is a good thing as it will allow many people to have jobs again and will allow more people to be able to live without worries, as to whether they have enough money to spend in the future. This will bring forth a very positive outlook within the many economies of countries all over the world.


Negative:
However, as more companies are trying to improve the economy, they nelected the fact that through their production of goods, it has caused pollution to increase in one way or another. Industries, in the process of producing more materials, have casued more pollution through their wastes and air pollution. This has therefore caused the weather to be affected all over the world, in a way causing global warming to get worse. It can be seen during these few weeks of weather in Singapore, as it has got hotter and more humid as compared to the past few years, causing us to feel uncomfortable.





Joshua Leong T01 (:

Labels: externality

Taking Public Transport
There are positive externalities when we take public transport like the Mass Rapid Transport (MRTs) or buses to school or to work.

Positive:
When we take public transport other cars on the roads will have a lesser chance of having traffic jams and it will allow people who are rushing to school, work or making deliveries be able to reach their destination in time. This will allow them to be more productive as time is money.

When we take public transports we reduce the emission of carbon monoxide into the air. According to SMRT, you can reduce your carbon footprint by 91% with the train, and 67% with the bus. In a year, your carbon footprint is 29kg when you take an SMRT train and 101kg when you take an SMRT bus. If you take a car, your carbon footprint is 308kg. The carbon monoxide that is released can cause carbon monoxide poisoning. Taking public transport will cause less pollution to the earth.

The wear and tear on the roads because of the huge number of vehicles using them will require money and time to be repaired.

Needless to say, with lesser vehicles on the streets, there is a lesser chance of an car accident to occur, which will be beneficial to pedestrians.


Done by: Sng Yee Hong

Labels: externality

Drugs
When one of the members of a family retreats into drug addiction, it becomes impossible for the family to stay healthy as a link in the chain is sorely damaged. The side effects of the drug such as defensiveness, anxious behaviour and mood swings not only affect the user himself, they also make even more difficult for a family to understand or get along with the drug user. Families who are unable to get help or rehabilitation for a member who is addicted to drugs will ultimately be witness to the slow death of that individual. If the addicted family member repeatedly refuses intervention, in some cases the family is forced to outcast this member. Rather than allow the addicted member of the family to constantly put others at a risk, some families make the ultimate decision to cut all ties with the addicted person. This can cause conflicts within the remaining members of the family, as they contemplate feelings of betrayal or anger.


SINYEE TO1

Labels: externality

Externalities: Driving a Lamborghini

Done by:
Justine (T02)

Labels: externality

Externalities
Education as an externality

Externalities are instances whereby a decision is made and people who are not involved in any way of the decision making are affected by it. There are two types of externalities, positive and negative.

A positive eternality, also known as external benefit, is when others benefit due to an activity that we pursue. How is education related here? Well, being in Singapore whereby education determines our future, our economy will benefit as a result from us being more productive, creative and equipped. Our community will also benefit due to us being able to rationale better. This will allow us to make better decisions towards situations like when we are about to commit a crime, we are able to weigh our costs due to the things that we have learnt and this will therefore, refrain us from committing the crime and this benefits our community and others. Therefore due to us pursuing a good education and wanting a better future, the benefit is whereby our company and economy will grow and negative things like crime rates are actually reduced.

A negative externality, also known as a external cost, is when others are harmed as a result of an activity that we pursue. Being in such a competitive society whereby grades mean everything to us. Weaker students may be affected emotionally and mentally when they are unable to keep up to the standards or do not do as well as others. This may result in undesired actions such as giving up on school, skipping class or totally not caring about education. This is one externality that we should prevent as education is very important.

Shaun T02

Labels: externality

Being in a relationship
Externalities are instances whereby a decision is made and people who are not involved in any way of the decision making are affected by it. There are two types of externalities, positive and negative. Positive externality happens whereby people not involved in the decision making, benefit from it while a negative externality is whereby those not directly involved in the decision making are affected by it.

One example of a negative externalities in Singapore, would be that of being in a relationship. In bad times of a relationship, be it when a couple is in a midst of a break-up or the couple had a very bad argument which resulted in a cold war, they would both end up to be in a foul mood.
in other instances, they might even make a decision to just stay away from everyone that cares for them. Why did i classify this as a negative externality?
It would be because, whenever such things happen. It would affect those around them. Friends and family that care for them.

In an event that the couple has had a bad argument and either party is in a foul mood, even if friends tried to show their concern by simply asking how is he/her feeling, she may ignore or even scold his/her concerned friends. In this instance, friends of the involved party may be worried and thus be unable to concentrate on more inportant stuffs, like homework, but instead think and try to figure out what had happened.

In an event that the couple had just broken up. It might result in the involved party being emotionally unstable. When this happen, the involved party might turn to ways and means to express how they are feeling deep down inside. The involved party might result to doing silly things like isolating oneself and even inflicting injuries to onself, thinking that it would make them feel better. When all this happens, it would cause unnecessary worry in his/her friends, family and even school lecturers. When the involved party goes missing in action (MIA), concerned parties may tend to wonder about what had seriously happened and might make assumptions.

But in every situation there will always be the pros and cons, a positive and negative parts of it. Being in a relationship may also be a positive externality. In good times, when both parties of the relationship are happy together, they would tend to be a form of motivation to each other. In a sense that, they will motivate each other to work hard together in life and in school work too. When this happens, parents and teachers can sense the determination of the couple, thus they would be more willing to interact with them.

Being in a relationship can also be a positive externality as, for a couple to stay long together, they would learn many life values and apply it in life. For example, when either party is working in the service line, with values learnt applied to work, customers would have a good impression on him/her.

Thus, being in a relationship may be a negative or a positive externality, cause whenever something bad happens within the relationship, the friends and family of the concerned party would be affected and suffer the unnecessary worry for him/her. And applicable values may be learnt from being in a relationship and applied on life which would in turn give good impression to others. Being in a relationship would be a form of motivation to the involved parties' parents and teachers. (:

done by Bernice Lim-T01

Labels: externality

smoking as an externality.

Externality cost.

Also known as negative externality.

Negative externalities happen when the social cost is higher than the private cost.

Cigarettes- a demerit good.

Even with all the negative health impacts it has on the smoker, his private benefit provides him or her with an image of independence, and even maturity to most smokers would want to have as they are insecure with their immaturity.

Cigarettes are a demerit good as they have a negative externality against the society. When somebody buys a pack of heavily taxed cigarettes, the person smokes and pollutes the air, hence costing the society more than the individual. It also can lead to other things like lung cancer of the passive smokers around him, costing them to pay the price even though cigarettes are already very heavily taxed in our society.

Labels: externality

Video Games


Issue: My dad buys home a new video game.

Positive Externalities:
When my dad buys home a video game, the whole family gets a chance to play and enjoy it. We get to spend quality time together while playing the video game. Also, our family can then save the money and time travelling to the nearest arcade to play that same game. In the way, we save money in not only the arcade but also money on petrol. We also get to play the game as and when to our convenience. This helps save travelling time to the arcade too.

Negative Externalities:
However, when the family is playing the video game; the noise becomes a negatve externality to our neighbours. It might be a source of noise pollution that distracts them from doing their work. Also, addiction to the video game might also occur and this might be a major negative externality that will occur.

SHEENA LIM. T01. :)

Labels: externality

Externality: Dr Red giving free tickets to "Common Cents".
Externality consists of negative and positive externalities. The positive impact is called external benefit while the negative impact is called external cost. Today I am gonna write about something that happened recently. That is Dr Red gave us free tickets to a play by TheVOICE, "Common Cents". The play talks about how 2 protagonists fall into monetary debts that caused them to want to give up their lives. In the end, they pluck themselves up with the help of their loved ones and became successful people. Those that went to the play did not pay for the tickets but benefitted with values taught by the play. They teach that though in this recession and economic downturn, life still goes on no matter what happen. Thus this is a positive externality.

Labels: externality

what would the world be without externalities?
Externality: Dr Red's absence from school.

"A cost of an activity that falls on people other than those who pursue the activity."
(Frank & Bernanke, 2007)

That's "externality", defined by Frank and Bernanke.

It exists in every part of our lives; there's no escaping it.

Since most of the topics have already been covered by my fellow course mates, I shall touch on a point which just happened recently.

On the 4th of May 2009, a fine sunny Monday, I was having a supposedly arranged group meeting with my members when we received a shocking SMS from our friend.

“Don’t come school.
Red sick.”

The 3 of us, who were already in school, got turned off by this informative SMS. The three of us took great efforts to wake up early in the morning at 8am just to make sure we arrive in school on time for project discussion, and lessons at 11am.

Firstly, if we had known that Dr Red would be absent, we would have arranged to meet on another day instead of Monday as Dr Red’s class is the only one on the Monday schedule. The time and effort wasted to wake up early, reach school early and prepare for group discussion have been wasted. This is a negative externality.

The time and effort spent could be used on doing other things which would be beneficial to us. One example would be using it to get ample sleep. I believe that the 3 of us, and others students who actually went to school, did not have the optimal 8hrs of sleep, just to be on time for the lecture.

Well, that is for the externality (positive or negative) that we all know. Now, let me introduce you to a new concept of controlled and uncontrolled externality, alongside with it being positive or negative.

Other than an externality being negative or positive, it can also fall until controlled or uncontrolled. This is a case of uncontrolled externality. Dr Red’s illness taking place was beyond his control. The level of externality is also not controlled. And in cases such as this, the loss is often much higher than cases of a controlled externality. An example of a controlled externality would be smoking or littering, activities carried out due to decisions.

Activities can be classified into 4 groups, A, B, C, or D.



Externalities are important factors which could affect lives vastly, thus, knowing the concept or positive, negative, controlled, or uncontrolled could mean a lot in everyday life.

the legendary CHANSEEEEE wrote this.

Labels: externality

LITTERING
What are externalities? An externality occurs in economics when a decision (for example, to pollute the environment) causes costs or benefits to individuals or groups other than the person making the decision. There are different externalities that occur in Singapore, be it positive or negative.

One of the negative externalities in Singapore will be littering. Many people in Singapore tend to litter as they are very lazy to walk to the nearest dustbin to throw their litter. This serves as a negative externality as when more and more people are doing this, the government has to employ more cleaners to clean up the area. Let’s just say throwing litter in the school, who will be affected in a negative way? Firstly, it will be the school. The school will have to employ more janitors to pick up trash and to clean up the school. Secondly, due to this, the citizens have to pay taxes to support the operation of the school.
Next, imagine the people who litter in the park, this would ruin the enjoyment of others who are strolling or running in the park. Not only that, this would also incur a cost in the landlords or the property owners as this would adversely affect the nearby property prices. Trash that isn’t taken out promptly will also smell and attract pests. This in turn will have an adverse effect on the citizens. They will have to incur health costs too as they will be affected due to the poor hygiene around the area.
Thus, the government has implemented fines on littering.

However, I am not only going to talk about the common littering that you see while walking along the streets or roads. What I am going to say now will be the littering of chewing gums. Often, many people tend to throw away the wrapper after unwrapping the chewing gum. Due to this, they will just spit out after eating it. Not only that, some may just stick the chewing gum on bus seats, key holes or even underneath the tables. This has caused serious maintenance problem in HDBs, with vandals disposing of gums in mailboxes, inside keyholes, and even on elevator buttons. Chewing gums left on floors, stairways and pavements in public areas increased the cost of cleaning and damaged cleaning equipment. Mr. S Dhanabalan, chairman of Temasek Holdings, has mentioned that the HDB spent $75,000 a year to remove the chewing gums from walls and floors in housing estates. This has indeed caused a headache in the government.
Thus, chewing gum was being banned in Singapore in 1992. On 2004, the law was being revised and Singapore government has allowed sales of chewing gums in pharmacies. However, Singaporeans have to sign their name on a piece of paper before buying them. Although Singapore has taken precautions against the littering of chewing gums and also by importing only a small batch of certain chewing gums, we are still not sure if this negative externality will occur again.


weiling T02

Labels: externality

EXTERNALITIES
Externalities refers to everything that occurs outside of the price. There are two types of externalities; positive and negative. a negative externality is a cost of an activity that falls on people other than those who pursue the activity. where else a positive one is benefits of an activity recieved by people other then those who pursue the activity.

my example of externality is my brother's drumming. his in a band and practices at home almost everyday for hours. whenever he plays it rather inconvienent for the family. for example the tv volume has to be turned up louder then usual so that we are able to hear it. he would also lock the door and keeps the house phone inside the room with him, when the phone rings he wouldnt answer cause he cant hear it, this has cause us to miss some rather important phone calls. my brother's drumming is a negative externaltity because whenever he plays we have to pay the price!

chuan yu

Labels: externality

Externality: Renewal of Books
When one borrows a book from the National Library, the loan is only for 3 weeks. To extend the loan by another 3 weeks, one has to pay a rate of $0.50 per book for the renewal of deadline for that particular book. However, if you’re just late in returning the book for a day or 2, the fine for each day would be $0.15 per book.

However, recently the National Library Board has made a change to this practice of borrowing and renewal of books. Now, one can renew their books for free for another 3 weeks, thus enabling the borrower to hold on to the book for a total of 6 weeks. This new change of rules has made borrowing books from the library difficult as the each library has an average of 2 copies of the same title, and since the implementation of this rule, each book loaned out from the library has an average of 4 weeks loan.

Thus, the current renewal practice is a both a positive and a negative externality.

It is a negative externality because the borrower would get to have the book for another 3 weeks without paying or making any form of compensation to the library or the other readers for holding onto the book for a total of 6 weeks. Other readers who may be waiting for the book would then have to wait for another 3 weeks because the borrower has extended his loan.

It is also a positive externality in the way that all borrowers/readers can extend their loans/deadlines of the books for another 3 weeks for free, thus allowing them to loan the book for a total of 6 weeks.

~Francine Wee

Labels: externality

Throwing litter as an externalities

One example of externalities is the act of littering in public places. Many people litter out of their convenience. This is a form of externalities as there are people who benefitted from this course of action as well as people who have to pay the price for this action

For people who are unable to find a job, the act of littering in public places serves as a positive externality to them as the government would have to hire people to clean up the places. However, there is still a limited number of people whom the government would hire as cleaners to clean up public areas. This is due to the law of diminishing returns as there might not be that much litter for too many cleaners to clean up. If the government hires too many cleaners, then the marginal cost to hire one more cleaner would be higher than the marginal benefit (which is the amount of litter they clear).

For other people, the act of littering in public places serves as a negative externality. This is because the litter thrown will dirty public places, causing it to be unhygienic resulting in the breeding of virus and germs leading to other people getting ill. This will impose a cost on these people who did not throw the litter as they will have to visit a doctor to get their illness cured. Another negative externality is the effect on the tourism industry. Tourist might not want to visit Singapore because they might not feel comfortable with the polluted environment. Although the people working in the tourism industry might not have littered, however their business may still be affected.

The government also imposes fines in order to deter people from littering.

Kay Yong T02

Labels: externality

Cute little pet dogs.

One negative externality that can be found in our daily life will be the existence of pet dogs. A search on the internet shows that around 10% of the family in Singapore owns a dog. This would mean that there will be quite a big amount of pet dogs in Singapore. Now let’s look at how it can turn into an externality.

Dogs are common animal kept by human as pet. We pamper them and treat them as if they are humans, feeding them with top grade dog food that cost over a few hundred dollars every month. After eating, owners will bring their dog for a walk to exercise around the neighbourhood. This is when the dogs suddenly have a stomach ache and start to poo all over the pave way and on the grass. If we are lucky, the dog owners would have actually picks up the waste and throw it away. However, Singaporeans are hardly considerate towards others. Many of time dog’s waste are left to decompose and rot on the streets. Next come along an innocent passerby who accidentally steps on the shit. This will result in a negative externality for the innocent person. He did not have fun playing with the dog or what so ever but have to clean up his shoe when he reaches home. Furthermore, he may have to endure the awful stench as he makes his way home.

Another externality existing with the presence of pet dogs will be their barking early in the morning. When the poor neighbour of the owner of the dog is still sleeping, he/she would actually be awoken by the loud and irritating barking of the pet dog. This result in a negative externality for the neighbour as he/she would result in a lack of sleep. However, it might also be a positive externality for the neighbour if he/she wants to save money on getting an alarm clock. =D

Eugene luah T02

Labels: externality

Sometimes when a new Pasar Malam is opened in the vicinity of your house and you take a stroll, you will notice there are vendors setting up their stall and selling pirated DVDs there.

The externality that I will be talking about today is about the burning and selling of pirated DVDs.

Why is it a POSITIVE externality?
It benefits the public because as typical Singaporeans, we all like to purchase our products at a lower cost. You can save money and use that money to buy something else that you like. Comparing to the price of movie tickets or purchasing an original version from the store, pirated DVDs are much cheaper. Now with advanced technology, the quality of pirated DVDs is much better and the graphics are way clearer compared to before. Why not purchase a cheaper pirated one when the quality is same as the original version?

STOP PIRACY!
Generally, moviemakers and record companies earn their living by producing their own movies and albums. So it is considered a negative externality to them. When people start buying from the vendors selling pirated DVDs, the profit does not go to the moviemakers and record companies. Instead, it goes to the vendors and those involved in the producing of the pirated DVDs. (Example: Blank disc suppliers, people who transfer the files into the disc).



So why should the pirated DVD vendors be the ones benefiting from the hard work and money put in from the moviemakers and record companies? In my opinion, I think they should not engage themselves as selling pirated DVDs for a living. This is because it is like stealing from someone who put in many efforts to produce a work and call it their own.

PeiQing, T01

Labels: externality

Things found along corridors
Externality is an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account. (About.com: Economics)

Things along the corridors are both positive and negative externality. Examples of things along corridors are pots of plants, laundries and large objects such as unwanted furniture.

These things can be consider as a positive externality because plants along corridors will enhance the environment and in the scientific way, plants help to clean the air thus we will have oxygen to breathe. Hanging laundries along corridors will be an advantage the owner as their clothes will dry faster and the dispose of the unwanted furniture along the corridors make it much more convenience for the owner as he/she does not need to carry them to the dump.

HOWEVER.

These issues can serve as a negative externality to others and sometimes, to the owner themselves.

For example, plants along the corridor are not properly taken care of and thus have stagnant water and causing it to be the optimum condition for mosquitoes to breed. This will lead to having more mosquitoes in the area and may lead to dengue.
Hanging laundries and discard unwanted items along the corridors may spoilt the image of the housing environment and also blocking the pathways. In addition, elderly and children may trip and fall, and injured themselves. These items along corridors can be fire hazard too.

GRACE.L
BZSE T01

Labels: externality, grace rocks~

Externalities can be classified under 2 categories - Positive and negative.

Postive externalities are the benefits you receive because someone else pursues a certain activity. Negative externalities are the costs you need to pay because someone else pursues a certain activity.


Ever made fun of or played a prank on someone in class? i'm sure most of you have. at least tried to.


My example of a common externality is making fun of others. Making fun of someone causes both a positive and negative externality.

Lets say one day in school, a class clown pursues the activity of making fun of a certain person in class. This joke makes other people in the class laugh and have a good time at the expense of the poor victim.



The classmates benefit from the clown making fun of the victim. They get a good joke, laugh, and have a good time. They experience a positive externality.

The victim however, experiences a negative externality. Because of the class clown's joke, He is now humiliated and suffers a loss of reputation amongst his classmates for a certain period of time. The humiliation is a negative externality.


-Billy.

Labels: externality

Externalities
One positive externality that I can see in my community is social enterprises. There are many different type of social enterprises, some help the ex-convicts other help single parent and etc… Today I would like to give an example of a positive externality and it is a social enterprise that helps ex-convicts to integrate back into the society.One fine example is eighteen chief. In eighteen chief, they give ex-convicts a job. This allow them to start all over again, without falling back to their old ways, which might means illegal way of earning a living. Eighteen chefs do not only give them a chance to work and earn a living for themselves, but also provided training so that they can acquire skills to serve the community instead of doing harm.

To conclude, I said that it‘s a positive externality because the community don't pay for the ex-convicts' salary, the salary will be taken care of by the eighteen chief. Till the end of the day it is the community which benefit because there will be less crime happening in the community, as the ex-convict will not go back to its old self but rather it will contribute to the economic.

Julinda T01

Labels: externality

Smoking.
Externalities: An externality is an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account. There are both negative and positive externalities.

The negative externality that i wish to discuss about is Smoking.
When a smoker decides to light a cigarette and starts smoking, he/she only takes into consideration the satisfaction and thrill he/she derives from smoking that cigarette, but they do not take into account the amount of pollution he/she may cause to the environment and also how can that simple cigarette affect another individual's life.

Indeed, externalities takes place when we pay for the cost of a decision and do not benefit from it or vice versa. In the case of smoking, the smoke produced from the cigarettes adds on to the amount of pollution in the air. Non-smokers pay to go for annual health checkups, medicine and maybe health pills that keep themselves healthy. However, the pollution caused by smoke that they inhale from these cigarettes can cause the non-smokers to be exposed to a higher risk of health problems compared to those who do not. Thus, although they are paying for the cost to maintain their health, in turn the non-smokers do not benefit from it.



Sheryl
BZSE t01

Labels: externality

externalities
Externalities are external costs or benefits of an activity that falls on or is received by the people other than those who pursue the activity. There are various externalities in this small nation of ours be it negative or positive externality. One such externality would be the Sumatra fires that spread to our little nation.

Labels: externality

Externality in Singapore: Education

An example of an externality in singapore would be education. When children or actually just about anyone undergoes education, he or she will be able to better serve the community. For example, if a few people start studying how to utilise natural energy such as sunlight, they might be able to help shift our energy sources to cleaner ones and reduce pollution. In this way, even the surrounding countries will benefit. Furthermore, educating people will help to reduce crime rates. By going to school, people, especailly youngsters, will spend less time hanging out in the streets. The neightbourhoods will be very much less rowdy if everyone child was at school spending their time learning and bettering themselves. In addition, with an education, people will be more likely to get jobs and therefore be able to support themselves. When people have a stable job, their parents won't have to fork out money to support them and the government won't have to spend taxpayers money to help jobless people pull through.

And although there are so many benefits that come with an education, not everyone pays for it, hence its an externality. The effects of it gets felt by everyone but is only paid for by a few or sometimes just one person alone.

Done by: Marcus Liu, T01

Labels: externality

if you ever tapped on someone's wireless internet connection at home, that is an example of positive externalities.

the person who paid for the wireless internet connection was not the only who benefitted from the internet connection. (unlike unlike national wireless conenction, which we do not have to pay to use it, our home connection is for personal use.)since you are not the one who paid for the internet connection, it means you are not directly involved in the economic transaction, but you benefitted from it because you could surf the net without having to pay for it.this means that the person who paid for the internet connection did not reap all of the benefits of the economic activity.

done by Adeline

Labels: externality

Externalities !
It is like a consequence or effect not considered in analysis.
It can be positive or negative .


If there is an externality that affects the interests of
other groups of people or other decision makers,
it is referred to as a spillover.



For example, if you always walk along the corridor
to take the lift from your house,
you passed by your neighbour's house,
and she has a very beautiful small row of plants on the floor,
all the plants were blooming flowers and it is very beautiful !
After seeing that sight, you will feel more happy !
So it is considered a positive spill
over effect ! : ]

In another way, if you noticed that
all the plants outside your neighbour's house were decayed
and there is odors coming out from the plants,
you will feel very disgusted and ruins your mood .
So in this case,
it is considered a negative spillover effect ! : ]


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Negative/Positive?
----------------------


For me , i think that one negative externality in Singapore is,
the low-end foreign workers like, the Bangladeshis moving into Geylang,
all the flats around that area will drop in their prices .
It is because the locals will be afraid of them ,
and don't dare to stay near them.
Thus, the prices will be fluctuated !


Those people (Locals) living in the areas ,
they won't be able to sell their flats for a high price
if they want to get out of that area .
Thus, i think that the low-end foreign workers
moving into one particular area , and the property prices drops,
it is a negative externality !


However, it can be considered a positive externality as well .
Those people who are very poor, and don't have a roof over their head,
they might be able to afford a house now, because of the fluctuated prices .
So those poor will tend to benefit from it, if they don't mind moving into the area.


:] : ] : ]


Cheers,


Ronny xD

Labels: externality

VIOLENCE :X
Domestic violence is a negative externality in Singapore. In the past two decades, the number of cases of violence that is happening in our supposedly gracious society is increasing. Besides affecting Singapore's good image as a safe and prosperous country, it also has adverse effects on the family members especially the kids.

Labels: externality

FOREIGN TALENTS IN SINGAPORE

A positive externality in Singapore is the foreign talents. The government spends money to attract foreign talents to settle in Singapore, benefiting Singapore in one way or another.

I have four main reasons for my view.

Firstly, there is a large portion of foreign talents in Singapore’s sport arena. For example, Singapore’s national Ping Pong players come from China. Because of their sporting talent, the Singapore Women Tennis Team clinched a silver medal in the 2008 Beijing Olympics for Singapore. Such foreign talents have brought about great honor to Singapore.

Secondly, there are a group of foreign talents who help groom the future of Singapore, by educating the young, our lecturers. With their wealth of knowledge and expertise, Singapore students may then benefit from their teaching and can better contribute to the society in the future.

Also, foreign talents introduce different cultural backgrounds, and this adds to the richness of Singapore’s diversified cultural life, which makes a uniquely Singapore.

Last but not least, there is a common unnoticeable benefit that Singaporeans garner from foreign talents. That is, due to the influx of foreign talents, Singaporeans begin to be more competitive. As, many of them are afraid they will lose out to the foreign talents. Once this happens, higher standards will be attained as everyone wants to be better than others. With such enhanced competition, I believe Singapore will progress to become a better nation.

Amanda Neo
BZSE-T01

We Loved12:14 PM

Drown your sorrows in alcohol

Alcohol drinking in Singapore is a common practice by teenagers and adults. People drink alcohol when they are happy for instance they are having a party and people drink when they are sad as the saying goes “Drown your sorrows in alcohol”. In addition, some people practically drink alcohol for practically no reasons at all because some of them treat it as alcohol as a commodity.

One negative externality of alcohol drinking is the result of drunk driving accidents which killed thousands of people all over the world and every year in Singapore, there are hundreds of cases of drunk driving accidents.

The private cost of this activity is the cost of the number of drinks one consumes. This amount is not definite because the alcohol consumption of every individual varies. Moreover, the amount of alcohol one drinks depends on many factors such as occasion, the situation one is in, the feelings one is facing and etc.

The more one drinks, the attention span of one will start to decrease. Thus, when one decides to drive home after drinking, the attention span one has while driving is reduced thus, increasing the tendency to cause accidents. These accidents are for example damaged in public property, injuring pedestrians or other drivers on the road.

Hence, the external cost is the cost of the accidents which is either damaged property costs or loss of lives. The cost of damaged property would be measurable but the cost of a life cannot be measured.

Thus, the social cost of drunk driving is the cost of the alcohol one consumes in addition to the damage or harm one does to the surroundings, property or loss of lives.

Let me explain what I have said in a simple example:

Private Marginal Cost (MC)

Mr. Z consumes 3 glasses of alcohol which the total cost is at $50. This $50 is the private marginal cost.

External Marginal Cost (MC)

Mr. Z caused damage in property which the total cost is $10,000. This $10,000 is the external marginal cost.

Social Marginal Cost (MC): Private Marginal Cost+ External Marginal Cost

In this case, the social marginal cost is $10,050 in consideration that there are no other costs.

However, this scenario does not always happen as there are other immeasurable costs included as well.

Done by:

Glenn M.D

Labels: externality

We Loved11:24 AM

NATIONAL SERVICE

National Service (NS) is one of the positive externalities in Singapore. There are various reasons for this.

First of all, only a portion of Singaporeans, mainly males, is required to be conscripted into NS. This would mean the whole country will be protected in the event of war despite only a portion of Singaporeans being trained in NS.

Some of the benefits NS bring about for the whole nation are such:

1) Fostering of racial harmony

As all the Singaporean males have to be enlisted for NS, it is inevitable that somehow all the males in the different ethnic groups will come together for the common cause of defending our nation. This would greatly improve interactions and consequently promote racial harmony and tolerance for each other. Also, since every male would have to go through similar experiences, they would be able to identify with one another, thus, sharing a common destiny of defending the nation.

2) Protection

For Civil Defence Service: This is the emergency rescue force of Singapore. Some of the services being provided include the ambulance, rescue force and firefighting. Those who are enlisted for such, are being trained to maintain a level of fitness where they are also exposed to regimental discipline. This is to say that, in the event of an emergency, they would be well prepared for it to save lives and protect our country.

For Police Service: After being trained at the Home Team Academy, they will be posted to the various departments such as Special Operation Command (SOC), Logistics, Land divisions, Airport Police, etc. They would be familiar with the Penal code and the Standard police protocol. Thus, they will be in a better position to enforce law.

One other benefit would be the humanitarian efforts where some of our NSFs have participated in the 2003 Invasion of Iraq, the 2006 South of Java Island tsunami, 2005 Kashmir Earthquake, and the 2004 Indian Ocean Earthquake.

It is definitely laudable for the service of these NSmen. They are the bulk of our defending forces and they deserve the honour.

Alison

BZSE T01

Labels: externality

We Loved9:55 AM

Cheryl - 10 January
Shumin - 15 January
Chuan Yu - 3 February
Jonathan - 24 February
Grace - 2 March
Alison - 31 March
Adeline - 20 April
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