Q3. A) Define the public goods with two main features giving two examples and discuss the difference between pure public goods and merit goods. B) Explain the positive and negative externalities referring marginal social benefit and marginal social cost as a rational for government intervention to the market. C) Explain market-based solutions to environmental externalities as a public policy decision by drawing a figure that shows imposing tax on pollution and compare the possible effect of this policy to effects of other two forms namely subsidies for pollution abatement, and marketable permits. Q3. A) Define the public goods with two main features giving two examples and discuss the difference between pure public goods and merit goods. B) Explain the positive and negative externalities referring marginal social benefit and marginal social cost as a rational for government intervention to the market. C) Explain market-based solutions to environmental externalities as a public policy decision by drawing a figure that shows imposing tax on pollution and compare the possible effect of this policy to effects of other two forms namely subsidies for pollution abatement, and marketable permits