Provide an example of a good that is either taxed or subsidized in such a way that attempts to account for the externality it creates. Describe the positive or negative externality associated with this good and the purpose of the tax or subsidy.

Question 2

Provide an example of a good that is either taxed or subsidized in such a way that attempts to account for the externality it creates. Describe the positive or negative externality associated with this good and the purpose of the tax or subsidy.