This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How do taxes work to reduce a negative externality? Explain in detail. What will be an ideal ... (Read 71 times)

lunatika

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
How do taxes work to reduce a negative externality? Explain in detail.
 
  What will be an ideal response?

Question 2

Find an example of the distinction between microeconomics and macroeconomics in today's headlines.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dajones82

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 29, 2018
Answer to Question 1

If a per-unit tax exactly equal to marginal damage costs is imposed on a firm, the firm will weigh the tax, and thus the damage costs, in its decisions. At the new equilibrium price consumers will be paying an amount sufficient to cover full resource costs as well as the cost of damage imposed. The efficient level of output for the firm will also fall as well.

Answer to Question 2

Microeconomics: On May 6, 2014 a headline in The New York Times was Bayer Buys Merck's Consumer Business for 14.2 Billion. This story covers a microeconomic topic because it discusses how two pharmaceutical firms have decided to transfer ownership of the unit producing over-the-counter consumer products for Merck. Macroeconomics: On May 6, 2014, a headline in The Wall Street Journal was U.S. Trade Gap Narrows as Demand Grows Here and Abroad. This story covers a macroeconomic topic because it concerns the total amount of international trade in the entire economy.


lunatika

  • Member
  • Posts: 548
Reply 2 on: Jun 29, 2018
:D TYSM

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Nonverbal communications convey strong, powerful messages that may be negative or positive. Nonverbal communications convey strong, powerful messages that may be negative or positive.
Apollo Belvedere (detail), Roman copy after a 4th-century BCE Greek original. Apollo Belvedere (detail), Roman copy after a 4th-century BCE Greek original.
Reduce Risk of Unintentional Injury Reduce Risk of Unintentional Injury
A negative feedback loop. A negative feedback loop.
Many European Americans are involved in ethnic work, attempting to maintain an identity more precise ... Many European Americans are involved in ethnic work, attempting to maintain an identity more precise ...
An automobile engine provides 524 Joules of work to push the pistons and generates 2160 Joules ... An automobile engine provides 524 Joules of work to push the pistons and generates 2160 Joules ...
Video: Lipid catabolism - lipolysis and beta oxidation and oxidation of fatty acids

For a complete list of videos, visit our video library