1. Briefly defining the concept of positive and negative externalities, provide at least three real world examples for each externality. By using the graphs and equations, illustrate and explain in words how to internalize the externality from your examples (one example positive externality and one for negative externality)
2. Some time ago an executive of a Broadcasting company argued before a congressional committee that they should make a law rating TV shows for violence content. He said that children are damaged and violence must be curbed. He indicated that his own network shows too much violence and that he would welcome a law himself so that Turner Broadcasting would show less violence. Explain why someone who shows violence on his TV channels is arguing for government regulation of himself.
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