Question

which of the following policies can be used to offset a negative externality and boost a positive externality​

Answer 1

Answer:

Government can discourage negative externalities by taxing goods and services that generate spillover costs. Government can encourage positive externalities by subsidizing goods and services that generate spillover benefits.

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Answer 2

Answer:

A nearby factory has begun increasing production dramatically, generating excessive pollution. Negotiations to reduce the pollution have yielded nothing.

Explanation:

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