Question: 2. Negative externalities commonly affect public resources where it is difficult to hold parties accountable, such as in a case of environmental pollution. (a) Explain

2. Negative externalities commonly affect public resources where it is difficult to hold parties accountable, such as in a case of environmental pollution.

(a) Explain with FIVE examples the negative production externalities (10 MARKS) b) Describe FIVE solutions in which the local municipal council might respond to this negative externality (10 MARKS)

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