i) is an example of negative externality and ii) is an example of positive externality.

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10-11-2022
Social Studies

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i) is an example of negative externality and ii) is an example of positive externality.

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RupaBera RupaBera · Answer 1 · 2022-11-14T12:34:32-05:00

Commonly used illustrations of negative externalities are noise and air pollution. Gaining skills for one's life and profession is an example of a positive externality.

What exactly qualifies as a positive externality?

When a benefit is shared with a third party, a positive externality has occurred. Taxing goods and services that result in spillover costs can be used by the government to discourage negative externalities. By subsidizing products and services that produce positive externalities, the government can promote them.

What exactly are economic negative externalities?

When a cost is transferred to a third party, a negative externality exists. When a benefit is shared with a third party, a positive externality has occurred. Taxing goods and services that result in spillover costs can be used by the government to discourage negative externalities.

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