Question 2: What are the two externalities that are associated with driving cars and trucks? Are these negative externalities or positive externalities? List and explain one policy that already exists that may alleviate the market inefficiency caused by driving. Does the policy increase or decrease driving? Why?

Question 2: What are the two externalities that are associated with driving cars and trucks? Are these negative externalities or positive externalities? List and explain one policy that already exists that may alleviate the market inefficiency caused by driving. Does the policy increase or decrease driving? Why?

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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