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1) Include a discussion of the ways in which the fantasy sports exam.pdf

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Both fantasy sports and pollution create externalities where third parties are impacted without compensation. To internalize an externality means to make the party creating the costs also bear the costs, such as through taxes or regulations. The One Page Plan podcast proposed using a carbon tax to internalize the external costs of pollution, which could effectively make polluters responsible for these costs.

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1) Include a discussion of the ways in which the fantasy sports example and the pollution example both qualify as examples of externalities. 2) Address the question, what does it mean to "internalize an externality?" Do you think the solution proposed in the One Page Plan podcast is an effective way of internalizing the externalities associated with pollution resulting from economic production?

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