Andrew Johnson, Chapter 3, Question #7

I have gained perceptive to the prevalence of externalities because Wheelan does a good job of portraying the paradoxical truth associated with externalities.The interactions individuals have with one another is the most common ground for externalities to form, such as Wheelan's love for quiet and his neighbor Stuart's love for bongo playing. The externality is the bongo playing, which Stuart loves while Wheelan hates, prompting Wheelan to pay Stuart to not play during certain times. Thus, externalities among individuals are easier maintained than with individuals and the government. The government has a larger scope of influence than does the single individual, thus suggesting that government mandates will only go so far without adding more negative externalities as a result of such mandates. Therefore, I can confidently say that there is greater possibility of resolution to negative externalities when settled by the individual/small community with other individuals/small communities than with individuals/small communities and their governments.