Which of the following is False as it regards Government Intervention: 1) Direct Controls are laws which limit activity, and force the offending firm to incur the actual cost. 2) A policy approach to negative externalities is for government to levy taxes specifically on the related good. 3) The government can correct the under allocation of resources by subsidizing consumers of the product. 4) Where positive externalities are extremely small, the government may decide to provide the product for free