How do governments correct for the unfairness of negative externalities? They create public goods. They pay the sufferers from tax money. They regulate firms and make such practices illegal. They educate citizens about such unfair practices.

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Randall Frost

15 August, 08:30

How do governments correct for the unfairness of negative externalities? They create public goods. They pay the sufferers from tax money. They regulate firms and make such practices illegal. They educate citizens about such unfair practices.

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Ali Oneal · Answer 1

In general, governments correct for the unfairness of negative externalities in that they "they regulate firms and make such practices illegal," although this is not always done properly.