3. Explain two reasons why a government might want to correct an externality. Include:
a. Definitions of economic terms.
b. Diagrams to show effects of an externalities (4 graphs)
c. Explain how the government can intervene to correct the market failure.
d. Identify and briefly explain one real world example that would apply to a negative production
externality.
PLEASE HELP THIS IS FOR A TEST

On january 1, 2018, johnstone leased an office building. terms of the lease require johnstone to make 15 annual lease payments of $134,000 beginning on january 1, 2018. a 10% interest rate is implicit in the lease agreement. at what amount should johnstone record the lease liability on january 1, 2018, before any lease payments are made?

Which value describes the desire to be one’s own boss? a. autonomy b. status c. security d. entrepreneurship

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.