Give an example of the government’s goals in regards to externalities? Use complete sentences.

Explanation:

The goal of Government is to reduce the negative externalities in the society and encourage positive externalities. Government plays the role of command and control by imposing standards, regulations, targets and  process requirements. Through this way the government reduces the negative impact of externalities in the community.

Another method of improving positive externalities is to encourage the corporate through subsidies, taxes and incentives. Through this way government tries to involve corporate in bringing positive impact in the society.

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