Comment on the following statement. "Taxing externality-producing activities may not eliminate damages."
What will be an ideal response?
Taxes on these activities are not designed to eliminate externalities; they are simply meant to force decision makers to consider the full costs of their decisions. Even if we assume that a tax correctly measures all the damage done, the decision maker may find it advantageous to continue causing the damage.
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When demand increases, the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases B) falls; decreases C) rises; increases D) falls; increases
Firms can only use one form of price discrimination
Indicate whether the statement is true or false
Which of the following groups tend to have lower unemployment?
a. younger workers b. middle-aged workers c. women d. those with less education
The demand curve facing a monopolist is
A. perfectly elastic. B. identical the demand curve for a perfectly competitive firm. C. perfectly inelastic. D. downward sloping.