Identify one or more negative externalities that have an affect on an individual. Could existing or proposed laws have prevented this from happening?"
1. Identify one or more negative externalities that have an affect on an individual. Could existing or proposed laws have prevented this from happening?"
2. What are public goods? Why these goods are not produced in the private sector?
...ption by others; and that no one can be effectively excluded from using the good.
Public goods provide a very important example of market failure, in which market-like behavior of individual gain-seeking does not produce efficient results. The production of public goods results in positive externalities which are not remunerated. If private organizations don't reap all the benefits of a public good which they have produced, there will be insufficient incentives to produce it voluntarily. Consumers can take advantage of public goods without contributing sufficiently to their creation. This is called the free rider problem, or occasionally, the "easy ...