Tuesday, May 13, 2008

Unit 2: Negative externalities asociated with car pollution

An interesting report from the BBC outlining another negative externality that results from traffic pollution

http://news.bbc.co.uk/1/hi/health/7396733.stm

a) Why would these blood clots be negative externalities?
b) How does the market fail
c) List 3 other negative externalities that arise from traffic pollution
d) Suggest an action the government could take to reduce this market failure and assess how successful it would be

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