Task 1 ext Why is that person in the car in front of us driv
Solution
Talking, Texting and Driving may be an externality as the effect of such an action could not only cause harm or damage or costs to the person engaging in the act but also to the ones who are not involved in it. Externality is a cost or benefit to a person who does not choose to incur that cost or benefit.
In our case, talking, texting and driving could lead to road accident in which another person could be affected. Hence, an accident as a result of talking, texting and driving may be an externality.
Typical government policy response to deal with the issue is to ban sending or receiving text messages and/or talking while driving. The governments of many countries have taken legislative action against the act, which means punishment for talking or texting while driving. Governments have also put up sign boards and are broadcasting public service messages on TV and radio to create awareness on the dangers of talking and/or texting while driving.
