Answer:
Government can play a role in reducing negative externalities by taxing goods when their production generates spillover costs. This taxation effectively increases the cost of producing such goods. ... The use of such a tax is called internalizing the externality.
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If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a Voidable contract
Explanation:
The definition of incompetence in terms of real estate transactions is different from the general definition of the word.
It means the inability of a person to make the contract in their whole conscience and sobriety.
This means that any person with mental illness or in a middle of a mental breakdown cannot be considered competent for a transaction, neither a person who is inebriated or drunk if they can prove it
Any contract thus entered by the person is considered to be voidable if the party could prove their incompetence in the court.
