Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Utopia is a small country that relies on tourism for the majority of its foreign earnings. A recent environmental study found that plastic waste was

Utopia is a small country that relies on tourism for the majority of its foreign earnings. A recent environmental study found that plastic waste was a serious threat to the environment of Utopia. The usage of plastic containers and bags by foreign tourists accounts for 50% of the plastic waste in Utopia. The Prime minister of Utopia is considering two policy options to tackle this problem.

Policy A - Every foreign tourist will be required to pay a $100 fee for entering Utopia.

Policy B - Imposing a significant tax on the sale of plastic containers and bags.

Which policy would you recommend to the Prime minister of Utopia and Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

4th edition

978-1259066528

Students also viewed these Economics questions