When an economy and government face negative externality, describe the cause of this problem and what are some solutions? Name at least three possible methods of correction.

Q: What difficulties occur when government attempts to use Pigouvian Taxes/Subsidies to address…

A: Pigouvian taxes are theoretically the taxes to be imposed on economic activities resulting in…

Q: If I neglect or refuse to cut the grass on my front lawn, what are the externalities involved?…

A: The externalities are the additional costs or benefits incurred to the third person who is not…

Q: What are positive and negative externalities, hint the ( causes, effects and the remedies.)

A: An externality is present whenever some economic agents' welfare (utility or profit) is directly…

Q: If education produces positive externalities and the government does not intervene in the market, we…

A: Positive externalities occur when an activity creates a benefit to the third person who is not…

Q: A law that prevents smoking on airplanes addresses a negative externality. True False

A: Externality refers to the advantages and disadvantages of being received by the third party.

Q: Why are taxes, one traditional remedy for negative externalities, less than ideal for smoking…

A: Correct option is (1).

Q: Consider the following event and identify which type of externality it creates: “…. Congestion…

A: 'Congestion caused by driving car to work' This means that too many drivers driving the car to work…

Q: In what ways do company investments in research and development create positive externalities?

A: Answer: Positive externality refers to the positive impact on a party due to the actions of another…

Q: Refer to Figure 2. This market is characterized by a positive externality. a negative externality.…

A: Externality arises whenever one economic agent's activity affects the society or any other third…

Q: An externality can create a difference between costs/benefits and costs/benefits.

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…

Q: Using practical examples, discuss how both positive and negative externalities are prevalent in…

A: Externality is the cost or benefit that comes from one agent but falls on another agent in the…

Q: Describe the misallocation of resources when there is a negative externality. Describe (NOT LIST)…

A: In economics, market failure is a situation in which a free market fails to allocate goods and…

Q: Explain how providing education to all children in grades K-12 provides external benefits to…

A: We show thatt the positive externality is when the bystander bears the advantage of any activity.…

Q: Give an example of a negative externality that you have witnessed or are personally aware of. Who is…

A: One day, one of my neighbors was smoking in a public park with kids around. His smoking was…

Q: Consider an economy which is heavily dependent on  tourism.  To boost tourist revenue, the…

A: The markets are the place where the buyers and the sellers of the products interact with each other.…

Q: Which of the following would create a negative externality? A person plays loud music that can be…

A: An externality is a cost or benefit developed by the producer and incurred or received by the third…

Q: Public Goods are used by all members of society, but sometimes they are overused and lead to things…

A: Non-excludable: - it is a condition where a person cannot stop another person from using a good or…

Q: Which of the following is NOT the way to solve the problem of negative externalities? a. Transfer…

A: In economics, the term externality is used to define the impact of one's action on any other…

Q: Identify a negative externality

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Education provides both private benefits to those who receive it and broader social benefits for the…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Explain how government subsidies to producers solve externalities ?

A: Government pays a part of the cost to the firm in the form of subsidies. This in turn leads to…

Q: All of the following are ways to cope with negative externalities blic choice ligatory controls…

A: ‘Externality’ is a cost or benefit that a person or a community receives but they have no control…

Q: A negative externality causes Select one: a. the social cost of production to be greater than the…

A: Externality is a situation in which the action of one party causes consequences to a third party who…

Q: True or False • If a good is produced with no negative externalities, private cost will be equal to…

A: A negative externality / external cost are a type of spillover which imposes a cost on the third…

Q: Describe how government actions can lead to more efficient outcomes when negative and positive…

A: Externalities are certain benefits or losses accrue to a third person who is not involved in the…

Q: How does government encourage positive externalities in the economy?

A: The situation in which either consumption or production of the goods/ services directly benefits the…

Q: Knowledge creates positive externality; therefore, governments should intervene in the education…

A: Positive externality occurs when the consumption or production of a good causes a benefit to a third…

Q: The result that, under certain conditions, government intervention is unnecessary to fix a negative…

A: Nash equilibrium-It is a solution to a game involving two or more players which provides the best…

Q: When it comes to externalities, the free market generally ignores any kind of private production or…

A: Externality refers to the spillover effect of a good or service on third party of the society.

Q: Identify the following situations as an example of a negative or a positive externality: a. You are…

A: An externality is said to occur when the action of one party impacts a third uninvolved party.…

Q: 1) An excavating company pollutes a local stream with acid rock. 2) A family enjoys a Fourth of July…

A: Answer in step 2

Q: Which of the following is an example of a negative externality (additional social cost)? Multiple…

A: When the creation or consumption of a product results in a cost to a third party, this is known as a…

Q: Describe externalities as a source of market failure with the aid of a clearly labeled diagram.

A: Externalities are the benefits or costs that result from an activity or transaction and that affects…

Q: Why the presence of the product variety externality does imply that there is too little entry of new…

A: * ANSWER :-  * Explanation :- A product externality leads to creation of a positive externality due…

Q: What externality problem do you expect in the market for plastic bags? How does the government…

A: The externality is the cost to the third party which is born by the society who does not involve in…

Q: What is an externality? What are the possible remedies (private or government) to externalities?

A: An externality is a cost or benefit of an economic action that is experienced by a distinct third…

Q: Why are externalities considered a sign of market failure?

A: Market failure occurs when there is inefficient allocation of resources in the free market.

Q: Governments pursue various policies to remedy the inefficiencies caused by externalities.  List and…

A: The administration can react to externalities in different ways. They can use command-and-control…