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Question 12 Question 2 a. Distinguish between pure public goods, publicly provided goods, and merit goods, giving one example of each. (4 marks) b. Define the concept of externality. Provide two examples of a positive externality and two examples of negative externality. (2 marks) c. Is the optimal level of pollution always zero? If not, using the concepts of social costs and social benefits, explain what is the optimum level of pollution. (4 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph V Open Sans, S.. V 10pt Ev A v EE XX - + V X EX