Principles of Microeconomics Externalities and COVlD Question One . . Dene the term negative externalities. Question Two . . Assume that during the summer I like nothing better than gomg out to my yard at 7.00 a.m. and using my leaf blower for two hours. Have l created a negative externality for anyone? Explain. Question Three . _ _ . 9 Assume a pig farm opens up next door to me. In what sense Is this a negative externality. _ How can i use the value of my house as a way of assigning a cost to that negative externality? Question Four . One solution to a negative externality is for courts to say to me: you have the right to prevent the person from opening up a pig farm next to you but you can sell that right. Therefore, assume that i sell the right to the pig farm to open up a pig farm next to me for $800,000 and the pig farm agrees to pay that. (Assume I am the only one who will be negatively affected by the pig farm opening up.) in what sense is that result socially optimal? Question Five Before a vaccine for COVlD was developed, why were there negative externalities associated with COVlD? Be specic. Question Six Assume someone argued that they could handle the problem of externalities connected with COVlD by doing what the pig farmer did: compensating the people who suffered a cost due to their negative externality. Why would that not have been possible? Question Seven The u vaccine and the COVlD vaccine have positive externalities. Define the te rm positive externality. Question Eight Why doesn't the shingles vaccine have positive externalities