Question
a. Why are externalities not efficient, from an economic standpoint? (2pt) b. Give an example (your own; not from the textbook) of a negative OR
a. Why are externalities not efficient, from an economic standpoint? (2pt)
b. Give an example (your own; not from the textbook) of a negative OR positive externality and give potential solution to move towards efficiency. (3pt)
c. In your solution, explain whether demand or supply would shift to arrive at your potential solution. (2pt)
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
