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From Wikipedia article titled "Externality":
There are a number of potential means of improving overall social utility when externalities are involved. The market-driven approach to correcting externalities is to "internalize" third party costs and benefits, for example, by requiring a polluter to repair any damage caused. But, in many cases internalizing costs or benefits is not feasible, especially if the true monetary values cannot be determined.
Ocie Koss
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What statement about externalities is false?
Only the private sector can create both positive and negative externalities.
Negative externalities result in a welfare loss but positive externalities result in a welfare gain?
you bet
What are some positive externalities that the airline industry produce?
expedite the the quality of service transportation and add the speed of transport. maybe this link is helpful to you http://www.econlib.org/library/ENC/PublicGoodsandExternalities.html
What is a negative - positive?
Negative * positive = negative Positive * positive = positive Negative * negative = positive
Does a negative plus a negative equal a postive?
No, a negative plus a negative is a negative
Why does alcohol have negative externalities?
Alcohol has negative externalities because it has the capacity to cause health problems
What is government's role in controlling externalities in the American economy?
Government tries to encourage positive externalities and limit negative externalities..
What is government role in controlling externalities in the American economy?
Government tries to encourage positive externalities and limit negative externalities..
What are positive and negative externalities?
a positive outcome, and a negative outcome
What statement about externalities is false?
Only the private sector can create both positive and negative externalities.
Negative externalities result in a welfare loss but positive externalities result in a welfare gain?
you bet
Why are spillover costs called negative externalities?
Spillover costs are called negative externalities because they are external to the participants in the transaction and reduce the utility of affected third parties (thus "negative").
When are negative externalities present?
when there has been a market failure
What are some negative or positive externalities the automotive industry produces?
Negative externalities lead markets to produce a larger quantiy than is socially desirable. Positive externatlities lead markets to porduce a smaller quantity than is social desirable. To remedy the problem, the government can internalize the externality by taxing goods that have negative externalities and susidizing good that have positive externalities.
What is governments role in controlling externalizes in the American economy?
Government tries to encourage positive externalities and limit negative externalities..
What is government's role in controlling externalizes in the American economy?
Government tries to encourage positive externalities and limit negative externalities..
What are the effects of externalities?
In economics, there are positive an negative externalities. Positive externalities are like positive side effects on the community after an economic decision like: congress puts more funds into schooling, students learn more, they graduate, and then they DON'T mess up the economy. See? Better for everyone. Oh yeah, and the opposite for Negative Externalities.
