If an industry created both external benefits and external cost, would a tax or subsidy be appropriate?

Question:

If an industry created both external benefits and external cost, would a tax or subsidy be appropriate? Why would someone be hurt by either one?

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

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

See More Books

Question Posted: Feb 07, 2013 06:11 AM

See More Questions

Why might your foot hurt if you kick a heavy desk or a wall?
Why would someone consider how broadly or narrowly the relevant market is considered to be so critical to the results when HHI values are used to evaluate mergers?
Why would two-phase locking not be an appropriate concurrency control scheme for indexes? Discuss a more appropriate locking scheme for tree-based indexes.
Calculate investment balance four years after acquisition Ray Corporation owns a 40 percent interest in the outstanding common stock of Ton Corporation, having acquired its interest for $2,400,000 on...
Methyl bromide (CH3Br, b.pt. 3.6C) is used as a soil fumigant to control insects and weeds. It is also a marine by-product. Photo dissociation of the C-Br bond produces Br atoms that can react with...
Problem 13-11 Missing Data; Statement of Cash Flows (L013-1, LO13-2) Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Cash and cash equivalents...
e What blog software do you want to use?
Warford Corporation was formed five years ago through a public subscription of common stock. Lucinda Street, who owns 15% of the common stock, was one of the organizers of Warford and is its current...
A 30% Service Level means that R=dLR>dLR
It is the end of year 2021. A company XYZ has projected free cash flow to equity $10, $20, $22 per share at the end of year 2022, 2023 and 2024. Projected growth rate after year 2023 will be...
Why does the text argue that lower air pollution taxes should be charged to drivers in less-populated areas? What if air pollution quickly spread throughout the world?
True or False: 1. Activities that impose costs on people other than the suppliers or demanders of a good or service are negative externalities. 2. In markets where negative externalities are created,...
The standard enthalpy of a certain reaction is approximately constant at + 125 k] mol-l from 800 K up to 1500 K. The standard reaction Gibbs energy is +22 kJ mol-1 at 1120 K. Estimate the temperature...
Over the past 40 years, union membership has declined, and it continues to do so. Instead, many companies are turning to alternative dispute resolution. We know one of the best union avoidance...
Article "A Leader's Journey" by Pamela Kruger Photographs by Nigel Dickson. For this discussion, let's try and unpack the key factors that led to his transformation. 1. What are your key takeaways...
Describe the collaborative roles of the team leader and the team coach in helping a group of people come together to form a team. Recommend strategies for Alex as team leader to use in helping to...
a. Complete the table with all marginal totals and cell counts. b. Calculate the following probabilities. i. For a male to be a Republican. ii. For a voter to be female. iii. For a voter to be either...
1. Will the Coronavirus Pandemic Make Working from Home the New Normal?" Address the following below. Define the problem described in this case. What are the management, organization, and technology...
On a day-to-day basis, how can we tell when to use a group to do something or when to allow an individual to do something?
Which of the following is NOT a magnetic dipole when viewed from far away? a) A permanent bar magnet. b) Several circular loops of wire closely stacked together with the same current running in each...
What are the major risks faced by insurance companies?
Suppose the government borrows $20 billion more next year than this year. a. Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall? b. What happens to...
In the summer of 2010, Congress passed a farreaching financial reform to prevent another financial crisis like the one experienced in 20082009. Consider the following possibilities: a. Suppose that,...
This chapter explains that investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit. a. Why is it difficult to implement both of these...
Case Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model: Cost Components Regular Deluxe Direct materials Lumber 2 board...
A corporate bond that you own at the beginning of the year is worth $930. During the year, it pays $56 in interest payments and ends the year valued at $920. What was your dollar return and percent...
Anissa makes custom bird houses in her garage and she buys all her supplies from a local lumber yard. Last year she purchased $4500 worth of supplies and produced 2500 bird houses. She sold all 2500...

If an industry created both external benefits and external cost, would a tax or subsidy be appropriate?

Question:

Step by Step Answer:

The answer depends on the relative magnitudes of the ...View the full answer

Exploring Economics

Students also viewed these Economics questions