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What is positive of externalities?

Updated: 9/17/2019
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Q: What is positive of externalities?
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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..


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a positive outcome, and a negative outcome


Negative externalities result in a welfare loss but positive externalities result in a welfare gain?

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Only the private sector can create both positive and negative externalities.


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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.


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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.


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Government tries to encourage positive externalities and limit negative externalities..


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Government tries to encourage positive externalities and limit negative externalities..


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Positive externalities in the automobile industry?

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