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What do you understand by the term externalities and how can it be corrected in Nigeria economy?
Wiki User
∙ 13y ago
Externalities is the positive (or negative) effect to the society due to consumption (production) of a good by an individual.
The answer assumes that the externality in which Nigeria is facing is a negative externality. Ways to correct negative externalities are:
- Taxation: By increasing tax, we discourage production of such good, reducing negative externalities
- Negative advertising: similarily, this method aims to reduce demand for the said good
- Tradable permit: The best example for this is the "Cap 'n' Trade" scheme used by the United States government. This aims to reduce the amount of negative externalities year by year.
- Banning of that good: One can ban the production of that good and make it illegal (drug.) However, this is likely to create a parallel market (black market)
Wiki User
∙ 13y ago
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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 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..
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