standard of living

• Economie
• Middelbare school
• vwo
• Leerjaar 3

External effect

Standard of living

Standard of living

The number of scarce goods and services can buy

This depends on........

Standard of living

The number of scarce goods and services can buy

This depends on

Income 

Prices

Income and prices Netherlands 2025

Average increase wages :  5 %

Inflation: 3.3 %

So purchasing power increases with.........

Income and prices Netherlands 2025

Average increase wages :  5 %

Inflation: 3.3 %

So purchasing power increases with 

5 % - 3.3 % = 1.7 %

Negative external effects

A negative side-effect of the market 

External effects of Aviation:

• Noise
• Pollution--> CO² emissions
• Effects the health of citizens near the airport (negatively)

Costs to society

The price of a ticket reflects the business costs:

staff, kerosine, landing permitt, maintenance

The costs to society (increasing health care costs)

are not included in the price

What are the external effects of mass tourism in Venice?

Negative external effects

Overcrowded streets

Decrease in local residents

Litter in streets and water

Measures government: 

Tourist tax of € 10 when visiting Venice

Think of another example of an external effect

Exercise 1 - 8

Go to work