Economics

    Try as we may, whether economies have markets that are laissez faire, loosely or tightly regulated, or
    whether the government is the major decision maker, markets do fail. That is, they fail to register the
    appropriate/proper/efficient prices and quantities in the marketplace. Costs and/or benefits may, in
    some markets, spill over onto people outside of the market transactions thus, the externality. Some
    are positive (my neighbor who lives to the left of me, has a flower garden that improves my quality of
    life and hes done all the work) and some are negative (my neighbor to the right of me lowers the
    quality of my life with the two broken down cars he keeps on his front lawn). Noting what has been
    mentioned above, take a positive externality or a negative externality and explore it in detail. Examine
    the role of social costs and benefits, private costs and benefits, what role, if any, can the government or
    even the private sector play in correcting the externality, is there a free rider problem associated with it
    and can it be corrected? As we attempt to correct for the externality what additional tradeoffs may the
    private and/or pubic sectors make? You should use graphs to help reinforce and bolster your argument.

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