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Hyper Government Solutions To Externalities Ance . 9.3 government solutions to externalities 1) government invention is required to solve externality problems if ________. Types of externalities that cause market failures. PPT Introduction to Externalities PowerPoint Presentation, free from www.slideserve.com 9.3 government solutions to externalities 1) government invention is required to solve externality problems if ________. If there's an externality, what can the government do in response? Possible solutions there are at least four general types of solutions to the problem of externalities: