1. Positive externalities, according to economists, often leads to ____________ while negative externalities such as _______________ leads economists to recommend ____________.

1. The underproduction of valuable goods and services; second-hand cigarette smoke; taxation or regulation of a market.
2. Non-market production and shortages; offensive music; banning the good or service.
3. An acceleration of Say's Law; alcohol and marijuana; subsidizing production.
4. The Coase Theorem; beautiful flowers planted along a highway; leaving the market alone.
5. All of the above.