Hello, I am Josh B from Mr. Sal’s period 3 ECON class and today’s topic is externalities. There are many different externalities in buisiness and industry, but they can all be split into two groups; negative externalities and positive externalities. Negative externalities can be many things, but generally they are things that harm people or the environment. Government steps in to regulate these negative externalities because if not the factories will ignore the pollution they are causing and the open resources like water and sun power are deteriorated. They also regulate for future items, like saying that the cars cannot emit a certain amount of carbon. Positive externalities are things that are caused by products or industries that help the people or environment. The government in this case try to increase the production of the positive externalities to help the people and environment that were previously harmed by negative externalities.