Question: Question 4 (a) Briefly explain the difference between negative and positive externalities and provide an example for each. (8 marks) (b) Define consumer surplus and

Question 4 (a) Briefly explain the difference between negative and positive externalities and provide an example for each. (8 marks) (b) Define consumer surplus and producer surplus. (6 marks) (c) Given that private market for education is produced below the optimum level. What should government do? Explain the difference between market efficiency output and optimum output with a suitable diagram. (1 1 marks) [Total: 25 marks]

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