Question 1: Use the concepts of excludability and rivalness to classify the following goods and services. First one is done for you. Excludable Rival Category City streets in No Yes Common resource Melbourne Local garbage collection Police protection Country roads Wilde life Governments provide public goods as well as goods that are not public goods. Explain the reasons for each of these government decisions.Question 1: Externality is the uncompensated impact of one person's actions on the wellbeing of a bystander. a) Give examples of negative externalities in production and consumption. Explain why market outcomes are inefficient in the presence of externality b) Identify the externality shown on the diagram below. Price Social cost 10 Private cost 5 Private value 20 30 Quantity c) Calculate and explain the value of: . The price and quantity in the social optimum equilibrium? Why is it the social optimum equilibrium? . The price and quantity in the market equilibrium? Why is it the market equilibrium? The tax which will internalize the externality based on the optimal government policy? Comment