Give an Example of an Externality That Does Not Warrant

question 38

Essay

Give an example of an externality that does not warrant government intervention,and explain why not.

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Definitions:

Confidence Interval

A range of values derived from sample data that is likely to cover the true value of an unknown population parameter, expressed at a given confidence level (e.g., 95%).

High Blood Pressure

A medical condition where the blood pressure in the arteries is persistently elevated, which can lead to serious health issues if not managed properly.

Margin of Error

An expression of the amount of random sampling error in a survey's results, which describes how closely the sample estimate matches the true value in the whole population.

Liberal Party

A political party that generally advocates for policies promoting social welfare, individual rights, and government intervention in the economy to promote social justice.