Externalities - is a cost or benefit experienced by a third party to a resource transfer. Discuss the following:
Problem 1: An externality problem is a problem of incomplete information, since profits fail to accurately report gains and losses to society, True or false? elaborate
Problem 2: How can the government intervene to make society better from the effects of externalities?
Problem 3: Distinguish between positive and negative externalities and give examples
Problem 4: Are federal mandates effective in regulating or correcting externalities, and are they good for society as a whole. Give examples.