Question
With electricity, we saw that it was important to tax the pollutant rather than the final product itself. In the following cases, will the proposed
With electricity, we saw that it was important to tax the pollutant rather than the final product itself. In the following cases, will the proposed taxes actually hit at the source of the external cost? Choose all that hit at the source.
A) Gas-guzzling cars create more pollution, so the government should tax big SUVs at a higher rate.
B)All-night liquor stores seem to generate unruly behavior in nearby neighborhoods, so owners of all-night liquor stores should pay higher property taxes.
C)Bell-bottom jeans insist on coming back every few years, and their ugliness creates external costs for all who see them. Therefore, bell-bottom jeans should be taxed heavily.
D)American parents are worried about their children seeing too much profanity on television. Congress decides to tax TV shows based on the number of profane words used on the shows.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started