Question
In April 2016, Mr. Wang noticed that the dead fish often appeared in his fish farm. Environmental protection technicians tested the river water and found
In April 2016, Mr. Wang noticed that the dead fish often appeared in his fish farm. Environmental protection technicians tested the river water and found the content of toxic chemicals in the river water exceeded the standard, which caused the fish dead. The toxic chemicals came from the waste liquid discharged by a chemical plant located in the upper river. Is this an example of a positive externality or a negative externality? What countermeasures do you have to deal with this externality?
2 . Using the theory of information asymmetry, try to explain the reasons and solutions for adverse selection in the used car trading market?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started