Zoning laws, which allow certain land uses only in specific locations, might be justified in dealing with negative externalities because they can multiple choice 1 restrict where businesses producing negative externalities can locate. be used for political gain. influence wage rates. require businesses to negotiate their own mutually agreeable solutions. In the case of positive externalities, tax breaks for businesses that set up in areas of high unemployment might be justified because multiple choice 2 the additional employment generated by these businesses will increase tax revenues. the additional employment generated by these businesses will increase the demand for housing. positive externalities require that tax breaks be given to these businesses. the tax breaks can be passed along to workers in the form of higher wages.
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