Government can use taxes and subsidies to change an inefficient market outcome into an efficient outcome. Do

Question:

Government can use taxes and subsidies to change an inefficient market outcome into an efficient outcome. Do you agree or disagree? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

See More Books

Question Posted: Feb 12, 2016 08:04 AM

See More Questions

Even if government uses taxes to deal with a negative externality, an inefficient market outcome will not necessarily change into an efficient one. Do you agree or disagree? Explain your answer.
Network Externalities and the Battle between Microsoft and Apple: Many markets related to technology products operate in the presence of network externalities because the value of such products to...
In the real world, government provision of public goods usually entails the use of distortionary taxes to raise the required revenues. Consider the pure public good national defense, a good provided...
Q1. a)Analyse Spencers experience in terms of consumer behavior framework in your notes. What variables and processes can you identify that appear to work in this situation? Does this situation...
Analyze the following data, gathered from a randomized block design using Î± = .05. If there is a significant difference in the treatment effects, use Tukeys HSD test to do...
What key fact permits you to determine percentages for a normally distributed variable by first converting to z-scores and then determining the corresponding area under the standard normal curve?
P7-1 Journal entries (constructive retirement of subsidiarys bonds) Penang Corporation owns an 80 percent interest in Minang Corporation. On October 1, 2016, Minang issued $100,000 par, 10 percent...
In Problem 14.37, NO 2 transport by diffusion in a stagnant atmosphere was considered for steady-state conditions. However, the problem is actually time dependent, and a more realistic approach would...
7. To which phase of the management process does each activity relate? a. Management compares the actual sales with the budgeted sales for the previous period. b. After discovering a large amount of...
Manufactured diamonds have become as big and virtually indistinguishable from the best natural diamonds (Dan Mitchell, "Fake Gems, Genuine Appeal," New York Times, June 21, 2008). Suppose consumers...
Government can remove individuals from a prisoners dilemma setting by changing the payoffs from various actions. Explain.
What is the case for government intervention in the economy with respect to nonexcludable public goods?
In Prob. 15.43, determine the locus of points of the sheet metal form for which the magnitude of the velocity is 200mm/s. 150 mex-me r
Drs. Draper and Keys run a partnership family medical practice in Brownsville, Texas. While the practice is profitable, both physicians are making payments on heavy debt loads for student loans that...
Sweetlip Ltd and Warehou Ltd are two family-owned flax-producing companies in New Zealand. Sweetlip Ltd is owned by the Wood family and the Bradbury family owns Warehou Ltd. The Wood family has only...
Small Sample Weights of M&M plain candies are normally distributed. Twelve M&M plain candies are randomly selected and weighed, and then the mean of this sample is calculated. Is it correct to...
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city....
The Tokyo Olympics After watching How the Tokyo Olympics Became the Most Expensive Summer Game Ever video answer the following questions. * * The numbers can be made up . I just need help with an...
This case was developed in collaboration with Caroline LeGarde, Operations Project Administrator, Johns Hopkins Medicine, Baltimore, Maryland Grayson County Regional Health Center is a private,...
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
What would be your answer to Exercise 12-11 if the business is expected to earn an annual after-tax net income of only $\$ 150,000$ ?
In the late 1970s, Britain seemed to have struck it rich. Having developed its North Sea oil-producing fields in earlier years, Britain suddenly found its real income higher as a result of a dramatic...
Explain how permanent shifts in national real money demand functions affect real and nominal exchange rates in the long run.
In Chapter 6, we discussed the effect of transfers between countries, such as the indemnity imposed on Germany after World War I. Use the theory developed in this chapter to discuss the mechanisms...
Suppose the S&P 500 currently has a level of 960. One contract of S&P 500 index futures has a size of $250 S&P 500 index. You wish to hedge an $800,000-portfolio that has a beta of 1.2. (A)In order...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during...
Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are currently $69,000, with prices increased by 5 percent annually....

Government can use taxes and subsidies to change an inefficient market outcome into an efficient outcome. Do

Question:

Step by Step Answer:

To conclude we can say that agree as long as t...View the full answer

Economics

Students also viewed these Economics questions