Question:
1. Read the question.
2 Record your response to the question in the text box below.
Assessment task:
The Government subsidises TAFE courses so that the TAFE courses become more affordable. Would you consider this a positive externality or negative externality?
Explain the externalities within the context of market failure. Will the subsidy shift the supply and demand curves? Draw a diagram to show the Demand and Supply curves before and after the Government Subsidies TAFE courses.