Market weakness 2 -Externalities

Question 1

The problem

Answer 1

The cost or benefit to a third party

Question 2

weakness

Answer 2

1. disregard for third party effects
2. Goods or services involving
   - external costs
   - internal costs

Question 3

intervention

Answer 3

1. Define and enforce
2. Tax subsidize
3. Direct

Question 4

Evaluation

Answer 4

1. Effective but sometimes

2. difficult to calculate the right level of