Positive & Negative Name: Externalities Date: Directions: For each of the following scenarios, identify whether it describes a positive externality, a negative externality, or neither. Provide justifiable explanations for each answer. 1. A farmer uses pest-resistant crops, which reduces the need for pesticides and benefits nearby farmers. 2. A factory produces pollution that harms the health of nearby residents. 3. A person buys a new car, which provides them with personal enjoyment but has no impact on others. 4. A person decides to recycle their trash, which reduces landfill waste and benefits the environment