Economica and Business Admin
BabyTazz21
additionalinformation.docxhttps://youtu.be/_-GWI782s8U
There are several different ways to deal with externalities in the economy. In some cases, it is not so clear that any intervention is needed. In other cases, the government may want to step in and tax activities that generate negative externalities, or else subsidize activities that generate positive externalities. Some cases may also call for direct regulations, or for the government to try to set up a scheme to allow markets to trade the right to conduct activities that generate negative externalities. Finally, in some situations private parties may handle externality issues on their own without any government involvement. The following three presentations take a closer look at these issues.
We can classify goods into different categories based on (1) whether and to what extent the benefits of the goods are private or public, and (2) whether it is possible to prevent non-payers from enjoying the benefit from the goods. A pure public good is one that benefits everyone regardless of whether they helped pay for it. As an example, consider mosquito control. If mosquito control is applied in an area, everyone's likelihood of being bitten by a mosquito goes down. This would be true even for those who refused to help pay for control. If payments are voluntary then some people (who still end up enjoying the benefits) will probably refuse to pay. Accordingly, it is far more likely that this kind of service will be provided for free by a municipal government rather than by private parties. The economics of 'pure public goods' and 'common resource goods' are in some ways very different from the economics of the of the pure private goods that we have focused on so far.
https://youtu.be/MLirNeu-A8I
