Welooked at positive and negativeexternalities

We looked at positive and negative externalities and what can be done to reduce the negative externalities or expand the positive externalities. How can we relate what happened with Coronavirus back to these ideas? Are there any positive/negative externalities here and if so, what are they and what is being done about them?

Answer preview

Externalities are costs or benefits caused by a producer that is not financially incurred and impacts the third party. Negative externalities do not benefit the third party. They may have a risk for the individuals and society, while positive externalities impact the third party, and they are more likely to benefit from them. In the case of the Corona Virus pandemic, negative externalities occur when for instance, an individual with COVID boards the same car with other people that do not. This causes negative externalities as it spreads the virus to other individuals. Behaviors that increase other people’s risks of COVID -19 infection are considered to be negative externalities. Positive externalities may also occur when the risk of contracting COVID-

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