Question

give three apporches used by the government to promote positive externalisties

Answer 1

Since there were two approaches o government for encouraging positive externality.

A positive externality is a benefit that is enjoyed by a third-party as a result of an economic transaction. Third-parties include any individual, organization, property owner, or resource that is indirectly affected.

There are two general approaches used by government in promoting positive externalities:-

Increasing Supply: Government grants and subsidies to producers of merchandise and enterprises that create outer advantages will decrease expenses of generation, and empower more supply. This is a typical solution for empower the supply of legitimacy products, for example, medicinal services, training, and social lodging. Such legitimacy merchandise can be subsidized out of focal and nearby government tax assessment.

Increasing Demand: Demand for goods, which generate positive externalities, can be encouraged by reducing the price paid by consumers. Like subsidizing the educational cost charges of college understudies will urge more youngsters to go to college, which will create a positive externalize for who and what is to come. Government can also provide free information to consumers, to compensate for the information failure that discourages consumption.