1)According to a local politician, only when there are negative externalities there is a need for government intervention, because in other cases no one is affected. Comment about this opinion from an economic point of perspective. Use appropriate diagram(s) to illustrate and explain your answer. (22.5 Marks)

I have modified it to make it clearer. Now it says:

According to a local politician, only when there are negative externalities there is a need for government intervention, because in other cases no one is affected.

Please help answer the modified statement above.