How can the social planner deal with negative externalities, Microeconomics

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How can the social planner deal with negative externalities

Assignment: Intermediate Microeconomics

1. When does externality arise within the Economics of the Public sector?

(a) Give 3 examples of negative and positive externalities
(b) What are the effects of both negative and positive externalities on the market?

2. How can the social planner deal with negative externalities?

3. Mention and explain two public policies towards externalities?

4. The coarse theorem states that.......................................................................

5. What are pigovian taxes?

6. What is the effect of import quota on the supply curve?

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Microeconomics: How can the social planner deal with negative externalities

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