Answer:
A ) The externalities associated with public goods are positive
e.g; a tornado siren providing externalities which is beneficial to other people and this can be gotten by users without payments
the free market quantity of public goods are generally less than the efficient quantity
B) Externalities associated with common resources are generally Negative
e.g when someone consumes a good from a common sources he generally leaves other with lesser amount of goods since he is not charged he consumes it excessively
The free market use of common resources is generally greater than the efficient use
Explanation:
Externalities are cost or benefit usually caused by a producer of a good or service but this cost is not financially received or felt by the producer. externalities can be positive or negative in nature.
They are caused financially by the consumer of the good. common resources are resources that can be reached and used by everyone without limitations.
