What an externality is
a. Explain what an externality is. (10 marks)
b. Give two examples of public policies that may have important externalities. (20 marks)
c. Explain why the evaluation of the impacts of a public policy is more difficult due to such externalities. (20 marks)
d. Is there a solution? Give one example. (20 marks)
e. How would policy makers decide which policy to implement to promote health and development if they have the choice between several interventions? (30 marks)
