The paper "Economics Assessment" is a great example of a Macro & Microeconomics essay. An externality refers to the uncompensated impact of the actions of an individual on a bystander’ s wellbeing. In the event that the occurrence of the externality caused by an individual on the wellbeing of the bystander is positive, then that entails a positive externality. On the other hand, the actions may yield negative impacts on the individual thereby giving rise to negative externalities. The case example given by Henry Hazlitt in his book, Economics in One Lesson, portrays two sides of the possible perceptions held by the audience following the decision of the boy to vandalise the window using the brick (Hazlitt, 2010).
From the first perception, the audience considers the act of the boy as a business opportunity to the glazier business since the shop owner would have purchased a new glass pane from the industry. However, it is also evident that the act has created zero employment and business since the decision of the shop owner to purchase a new glass prevented him from purchasing the new suit that could have created an employment opportunity in the tailoring business.
The paper presents an in-depth analysis of the smoke exhaust from automobiles with regard to its impact on the environment and human beings and the different perceptions held by individuals and concerned organisations about the issue. The Volkswagen and Audi Case It is apparent that the Volkswagen emission scandal has been on the front page of many magazines and newspapers addressing environmental pollution. The fact was evident: Volkswagen had cheated on its emission tests (Hruska, 2015).
Additional emission tests conducted on its automobiles revealed that the emissions produced by most of its automobiles surpassed the emission levels stated by the company. According to the US Environmental Protection Agency, the emission levels of the cars were forty times the standard emissions required by the agency (Lu, 2011). The cheat effects of the company have compelled it to recall approximately 11 million cars globally to rectify the issue. However, a third party would have different economic perspectives about the issue. Hazlitt heightens the essence of looking at the unforeseen and hidden consequences of an action rather than concentrating on the immediate consequences of an action. Apparently, focusing on the immediate consequences of the action of the globally recognized automobile company to install software components that display cheating emission results has an immediate impact on the profitability of the company.
Chu, J. (2015). Study: Volkswagen’s emissions cheat to cause 60 premature deaths in the U.S. MIT News. Retrieved from: http://news.mit.edu/2015/volkswagen-emissions-cheat-cause-60-premature-deaths-1029
Hazlitt, H. (2010). Economics in one lesson: The shortest and surest way to understand basic economics. Crown Business.
Hruska, J. (2015). VW caught cheating on diesel emissions standards, ordered to recall 500,000 cars. ExtremeTech. Retrieved from: http://www.extremetech.com/extreme/214605-vw-caught-cheating-on-diesel-emmissions-standards-ordered-to-recall-500000-cars
LU, J. (2011). Environmental Effects of Vehicle Exhausts, Global and Local Effects: A Comparison between Gasoline and Diesel.
Ojolo, S. J., Oke, S. A., Dinrifo, R. R., & Eboda, F. Y. (2007). A survey on the effects of vehicle emissions on human health in Nigeria. JRTPH, 6, 16-23.
Sydbom, A., Blomberg, A., Parnia, S., Stenfors, N., Sandström, T., & Dahlen, S. E. (2001). Health effects of diesel exhaust emissions. European Respiratory Journal, 17(4), 733-746.