What is the government's response to the negative externalities?
There are many ways governments uses to deal with the negative externalities such as air pollution, noise pollution, and waste. One of the most common ways the government uses to deal with pollution is setting up pollution taxes. This goes with the concept that the more pollution you create, the higher the costs. They also can sell permits to company to make them pay if they are going to pollute the environment. They also set up limitations to how much they can pollute and sometimes they will create leaflets and adverts to educate the public on the causes and effects of pollution.
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