Q 8 answer A,b,c 8. For each of the examples below, answer the following three questions: a. Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality. If you are uncertain, describe the conditions under which there may, or may not, be an externality b. If there is an externality, does it seem likely that a private market will arise that allows this externality to be internalized? c. If there is an externality, contrast the effectiveness of each of the following corrective measures that the government can use to address the problem: 1) direct quantity regulation 2) taxes/subsidies 3) permits with trading a) smoking by individuals b) nuclear waste production by nuclear power plants c) research and development by a high-tech firm d) the owner of a house clearing the snow from the sidewalk in front of his home