Government regulations help balance negative externalities such as no smoking rules enforced to mitigate the effects of second-hand smoke.
Negative externality is when the activities of producers or consumers negatively affect third parties not involved in production or consumption activities.
For example, smoking affects those who are not smoking. They are affected by the second-hand smoke. To prevent this, no smoking rules can be enforced.
To learn more about externalities, please check: https://brainly.com/question/26266710
