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supply and demand, NAFTA, over seas competition

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17y ago

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What are some positive externalities in the home building industry?

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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.


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


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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.


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