POL-3.B—Explain (using graphs where appropriate) how public policies address positive or negative externalities

Explain (using graphs where appropriate) how public policies address positive or negative externalities.

• Policies that address positive or negative externalities include taxes/subsidies, environmental regulation, public provision, the assignment of property rights, and the reassignment of property rights through private transactions.
• Enduring understanding POL-3: Private incentives can fail to account for all socially relevant considerations.