Market failure + sustainable growth are key themes from micro + macro
Remember the distinction between production (supply) + consumption (demand)
An overview of the source of the externality and the resultant allocative inefficiency should be developed in context before considering policy options
Basic policy pairs are:
Negative - discourage tax + price floor
Positve - encourage subsidy + price ceiling
Easy evaluative tones can be added with elasticity and level of intervention influencing outcomes
Ultimately identifying and valuing external impacts is a difficult (read impossible) process
Government failure should always be referred to to close out the issue
Incomplete info
Unintended consequences
Political bias
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