Sunday, June 14, 2009

Unit 1: Negative externalities associated motoring

This BBC clip outlines one negative externality associated with motoring

http://news.bbc.co.uk/1/hi/sci/tech/8092182.stm

a) Define a negative externality
b) Explain the negative externality outlined by the clip and article
c) Using a diagram, explain how the market fails in this case
d) Suggest 2 possible actions the govt could take to reduce the negative externality, and give 2 disadvantages of each action

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