Zaanse Schans —The Historic Dutch Village

The historic Dutch village of Zaanse Schans, famous for its windmills, attracts millions of tourists—2.6 million last year alone—despite having only 100 residents. Tourists trample gardens, invade privacy, and cause overcrowding that diminishes everyone’s enjoyment. The local council will charge each tourist €17.50 ($20.50) beginning next spring.—bbc.com

Answer the following questions to check your understanding of the story.

1) What type of externality is described in the news clip?

2) How will the tourist fee address the externality problem in Zaanse Schans?

If €17.50 is equal to the externality created by a tourist, _____________.

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