ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 17, Problem 2.3P
(Negative Externalities) Suppose you wish to reduce a negative externality by imposing a tax on the activity that creates that externality. When the amount of the externality produced per unit of output increases as output increases, the correct tax can be determined by using a demand-supply diagram; show this. Assume that the marginal private cost curve slopes upward.
Negative Externalities: The Market for Electricity in the Midwest:
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- 29- Government of UAE is exporting surplus Dates produced in the country. There are government initiatives to promote dates export from the country. These measures are taken by the government to_____. a. Encourage Date farmers in the country b. All of these c. Ensure fair income for date farmers in the country d. Generate export income for the countryarrow_forwardQuestion 10 A government is considering reducing the amount of taxes it collects from its citizens each year. Which of the following is the best argument against the tax reduction? a The government might have a smaller role in the economy. b The government will likely have to produce fewer goods and services with the reduced revenue. c Citizens will not be able to purchase as many goods and services as they could previously. d People do not generally like taxes.arrow_forward5.21 explainarrow_forward
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