Market Failure

Question 1

Define Negative externalities

Answer 1

Costs imposed on 3rd parties not involved in the production or consumption of a good or service.

Question 2

Draw negative externalities diagram

Answer 2

THE ONE PIECE IS REAL

Question 3

How does the government move us from Qfm to Qso?

Answer 3

1. Law / regulation
   
   2. Tax
   3. Advertising
   4. Re-Define property rights
   5. Develop a substitute
   6. Education
   7. Quotas
   8. Tradeable permits
   9. Minimum prices

Question 4

Define positive externalities

Answer 4

The benefits give to 3rd parties aren’t involved in the production or consumption in a good or service.

Question 5

Mark the positive externality on a diagram

Answer 5

Mr lame and watch