Can I get a response to this its on Incentives and Externalities

An externality is a cost or benefit of an economic activity experienced by an unrelated third party. The external cost or benefit is not reflected in the final cost or benefit of a good or service. The primary cause of externalities is purely defined property rights. Generally, externalities are categorized as negative or positive. Government policies to solve environment externalities: A government may impose taxes on good or services that create externalities. The taxes would discourage activities that leads to high green house gas emissions. Pro perty Rights A strict action of property rights can limit the influence of economic activities on unrelated parties. However. it is not always an option since their ownership of things such as air or water cannot be assigned to a particular agent. Moral Hazard -The risk that a party has not entered into a contract in good faith or has provided misleading information about it's assets liabilities offer credit capacity. It is an insurance concept. When someone can take a risk that someone else pays for. In short, a situation that arises when an individual has the chance to take advantage of a deal while knowing the risks. For example, being careless with the safety of your home because you have insurance that will cover damages. Or not installing a smoke alarm because you have insurance for fires/fire damage. This implies that someone else will pay the cost for you being careless because you have a plan to fall back on. Adverse Selection: The main difference is in a moral hazard situation, the change in the behavior of one party occurs after the agreement has been made. With Adverse Selection there is a lack of information prior to when the contract is signed/agreed on. An example that most can relate to is with health insurance. The insured person may choose to keep certain unhealthy habits of the application to make it seem more presentable to the company but makes it unprofitable for the person who has more information on their own health than the insurance company. After getting insured, the person is more careless about their health. Their diet may not be as strict, smoking/drinking can be done in larger amounts or they could take more physical risks. Another example of moral hazard. Kenton, W. (2023, January 18). Externaiity: What it means in economics, with positive and negative exampies. Investopedia. Retrieved March 26, 2023, from httpSI/fwww.investopedia.com/termS/eiexternality.asp