Wednesday, February 27, 2008

Unit 2: Negative externalities; river pollution

The BBC reports this classic example of a negative externality

http://news.bbc.co.uk/1/hi/world/asia-pacific/7266364.stm

a) Using evidence from the article, explain why this pollution is an example of a negative externality
b) What action could the government take to try and ensure such an episode doesn't happen again?

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