The situation of "government failure" can arise when attempts to eliminate these aggravate the problem.
The situation of "government failure" can arise when attempts to eliminate these aggravate the problem. A revolutionary theorem about them suggests that they will be countered in a Pareto-efficient manner, regardless of ownership, in any system with clear property rights and negligible transaction costs. Traditional approaches believed that the positive kind, caused by "merit goods," is always outweighed by the negative, a common example of which is air and water pollution. For 10 points, identify these phenomena, defined as the unintentional effects of one entity's economic activity upon other entities.
The situation of "government failure" can arise when attempts to eliminate these aggravate the problem.
{externalities}