« previous next »

Author Question: When external costs are present and government imposes a tax equal to the external marginal cost, ... (Read 116 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
on: Jun 29, 2018
When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved.
 
  Indicate whether the statement is true or false

Question 2

Explain what a black market is and how it functions. What is a black market generally a response to?
 
  What will be an ideal response?


asware1

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

It is a market in which illegal trading takes place at market-determined prices. It's usually the result of the government imposing a price ceiling which results in a shortage of that particular product. The black market is a way for consumers and firms to get around the restriction.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Energy costs of locomotion. Energy costs of locomotion.
An otoscope, used to visually examine the external auditory ear canal and tympanic membrane. An otoscope, used to visually examine the external auditory ear canal and tympanic membrane.
external structure of female reproductive system external structure of female reproductive system
External female genitalia External female genitalia
Rat's external anatomy Rat's external anatomy
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Cavernous Sinus Larynx Middle Ear Orbit: Granulesm Animation

For a complete list of videos, visit our video library