After reading chapter 8, I learned about market failure, and a variety of relevant environmental topics. So, suppose there is a factory near my home, and it produces tremendous amount of major hazardous chemicals into a river and air.

1. need to explain if this is an example of positive or negativeexternality and need to know why it falls into that category of negative or positiveexternality, using the economic definition of positive or negativeexternality.

2. I need to discuss how the above-mentionedexternalitycould be internalized by government actions through onre of the two (either tax or subsidy) with out discussing government regulations.

3. I also need to discuss biblical principlesassociated the topic.