About 450 people have fallen ill in southern China after
drinking contaminated water. Industrial waste from a
metal company has been blamed. Water included really
dangerous element such as arsenic. (BBC News)
a) Explain why the people falling sick is an example of a
negative externality?
Well, negative externality is a negative effect on third parties.
People who live near to that factory are third parties.
Factory produce something and they pollute water
and it affects to people who live in that village.
So thats why it is an example of negative externalities.
b) Suggest 2 courses of action the government could
take to try and reduce the possibility of such an incident
happening again.
I think that government should create special committee
that will check and fine if they will pollute environment.
The other way is to put really big tax on that factories
and spend this money to clean water.
Also they should make them to build new filtres which
will clean all dangerous things.
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