Positive and Negative Externalities

Required: 

Give an example of

(a) a positive externality, and

(b) a negative externality, and

explain how a social inefficiency is created in each case.

Suggest a solution to correct the externality inefficiency in each of your examples and explain –in practical terms- how this
solution will work.

At least one of your solutions must be free market (not regulation) based, and your examples must be original (ideally, they should come
from your experience or everyday life, and not from class, the text, or other publicly available sources).
• Please, make sure that the examples come from experience or everyday life Not
From Other Resources as highlighted above.
• Please tackle each point addressed in the question efficiently