Positive Externalities Flashcards
0
Q
How to correct positive externalities
A
Subsidies
Regulation
Protection if intellectual property rights
Improved information
1
Q
Positive externalities
A
The positive spill over effect of production or consumption which effect the rest of the society rather than individual producer or consumer.
2
Q
Merit goods
A
Goods that the gov. feels people will under consume and therefore which should subsidised or provided free. This is because of information failure.
E.g. Education and health care
