Question

Discuss both corrective taxes and even subsidies used by a government to protect the economy and also to added social benefits that can be added by the government to elements of society whose needs might not become met.

List ways that problems caused by externalities can be solved without government intervention.

Explain how the Internet has affected your life both in a positive and even a negative way

Answer 1

CORRECTIVE TAXES AND SUBSIDIES

• Free universal health care
• collecting refuse and litter
• training and education

Externalities can be solved without government intervention through

• charities
• by relying on the self interest of the relevant party.
• moral values
• contract to not commit negative externalities
• patent system
• merging firms
• social sanctions

INTERNET has affected our life both in a positive and even a negative way.

POSITIVE EFFECTS

• Internet search engines bring lots of informations to users.
• engaging learning activities
• tools for organization and study skills
• helps in communicating with people through instant messaging and e mails.
• online transactions
• weather forecasting
• provide books, journals and magazines

NEGATIVE EFFECTS

• illegal or inappropriate material material can be found
• addiction to social media
• spreading of viruses
• anxiety, sadness and depression
• unable to keep schedules
• sleep deprivation
• dishonesty and lying
• mood changes
• intercepting of bank details and credit cards