00:06
Economic and resources typical resources are land labor capital and of course we always think about entrepreneurship so we have land labor capital and entrepreneurship for the most part the goal of economics leveraging human expertise where they will be human optimized, limited, or scarce resources.
01:12
So for the most part, the beginning with scarce resources.
01:16
And so you want to make sure that you know, pick up choices for dealing with scarce resources.
01:23
The problem, though, is exploitation of resources, exploitation of resources, positive or negatives, all negatives, the environment to the environment and so these outcomes are called positive externality or negrees so we do have both positive when negries external we'll start by saying the first part of the problem is examples examples of negative and positive examples of negative and positive external so so negative externalities obviously have negative consequences to the environment and this includes negative externalities in the environment detrimental way such as or such as a business producing a greenhouse a gap is manufacturing box so that the negative externality and when it comes to politics, externality, positive external, include the impact of having an educated workforce and economic growth.
05:05
The second thing we're looking at is store, supply and demand growth of maybe on production process, think about your x and your y axis, quantity of gold and then prize of gold and then we also have the equilibrium so demand graph providing the private value and it is supply graph and the supply provides a private cost and so if you have a navy district now a graph upward, the supply graph upward social cost and so the social cost is the private cost which is the regular supply but private cost plus external cost so this whole thing that you're seeing right here increment this is this point right here is going to be the out you know that point is going to be the opportunity so initial equilibrium two market and the next equilibrium key optimal the quantity, the collidium.
08:46
The market is the negative externality introduced social costs, making it higher the private cost.
09:34
The social is elevated, the social cost loss is elevated, holding quantity less than the market.
10:28
That's what you have right there.
10:32
The other thing we're asking is how the puckie, how the puts resolve, introducing new technologies can cause steel over, allow inventors, capture, the market, i had else limiting unwanted end, limiting and wanting spillover, encouraging by controlling the benefit from society, encourages for food and development expected positive found.
13:34
The other thing we're looking at is how can benefit the environment of regulation, of the regulation, corrective such as alcohol, telling consequences the advantage of using corrective taxes over regulation is that unless taxes are less costly to taxes allow market control by itself also business the environment for example will want to avoid a penalty by better cleaner.
17:01
And then the other part is how private sector controls the next to nationality without government intervention...