The following video summarizes the concept of Externalities, how they can result in Market Failure, and how governments try to correct for these Market Failures.

Guiding Questions

Watch the video and then consider the industry/market that you are writing about in your Real-World Markets research paper.

Describe an externality (positive or negative) that is associated with your industry. 

Has there been government intervention in the market to try to correct this externality?

Write up your answers and then submit them.