Externalities – Assignment Instructions And A Sample Answer

Write a two to three (2-3) page paper in which you:

1. Identify and discuss three (3) externalities, which can either be positive or negative.
2. Conclude why an externality might exist in the situation that you described, and determine the solutions to mitigate these particular externalities.
3. Analyze the different stakeholders (i.e., government, three (3) affected parties) that are involved in the externality, and identify what their roles are with regard to the externality.

The specific course learning outcomes associated with this assignment are:

• Use economic analysis to describe the social costs and benefits of government and public policy choices.
• Analyze the relationship between economic activity and the resources available in a society.
• Use technology and information resources to research economic problems and issues.
• Write clearly and concisely about economic problems and issues using proper writing mechanics.