MICRO ECONOMICS SHORT QUIZ
Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. Each answer must be a minimum or 175 words.
1) What effect do government intervention, taxation, and regulations have on economic behavior? Explain. What are real-world examples of government intervention, taxation, and regulations? What are the goals of each?
2) What is an externality? Provide at least three examples. How does one of the examples you provided affect the market outcome? What is the role of government in addressing the implications of an externality you provided as an example? Is it possible that a government’s solution to a market failure would worsen the failure? Explain your answer.
3) Class, what is a positive externality? Explain and give examples.
4) Class, what are other types of incentive mechanisms for dealing with negative externalities. Explain.