Length 3,000 words Please note that this question requires substantial research (see the assessment criteria below). a)Explain what negative externalities are, and why there may be a case for...

Length 3,000 words

Please note that this question requires substantial research (see the assessment criteria below).

a)Explain what negative externalities are, and why there may be a case for government intervention to address them.Describe how taxes/charges and regulation can be used to correct the negative externalities and the pros and cons of each method.Provide real lifeexamples.(6marks)

(b)Choose a case study from your home country where an externality exists in a current market. Using your case study (real data) explain the effect of externality on market outcomes including dead-weight loss and discuss ways that your government has addressed the presence of negative externalities in the market. (10 marks)

(c) Suggest other options for dealing with negative externalities in your case study. (6 marks)

(d) Using the key characteristics of the market structures identify the market structure in your case study. (6marks)

Additional marks(2 marks)

Appropriate use of referencing.2marks

Assessment criteria

• Youmustrefer to the textbook in the first instance. Besides the textbook, you should also refer to a few otheracademicbooks, journal articles and relevant websites in answering these questions.


• Use in-text referencing and provide a list of references.


• All submissions for this course must use the American Psychological Association (APA) referencing style (details can be obtained at https://www.cqu.edu.au/student-life/services-and-facilities/referencing/cquniversity-referencing-guides).


• Concepts must be defined accurately and completely.


• The assumptions upon which the analysis is based must be stated at the onset.


• Diagrams must be drawn properly, correctly labelled and the relations they depict explained.


• Photocopied and scanned graphs from books, articles or websites are not acceptable. It is preferable to hand-draw a graph then scan it to insert in your file.


• Answers must be complete, addressing the specific tasks nominated in the questions