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Government intervention can move the output closer to this desired level, thereby improving the aggregate social welfare. This policy analysis perspective also suggests the types of policies appropriate for addressing each issue—marketable permits, taxes, or quantity regulations for negative externalities; and subsidies, quantity regulations, or insurance against the worst outcomes for positive externalities for government intervention to address themSome cases of negative externality, the Government will need to intervene to solve the problem, because the Government can move the appropriate factors to improve benefits to better สังค.
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