« previous next »

Author Question: When external costs are present and government imposes a tax equal to the external marginal cost, ... (Read 100 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?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Structures of the external ear, middle ear, and inner ear Structures of the external ear, middle ear, and inner ear
Economic Costs of CVD Economic Costs of CVD
Does It Cost More to Eat Healthy? Does It Cost More to Eat Healthy?
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Structures of the external eye Structures of the external eye
Rapidly decreasing sequence costs have enabled the rapid expansion Rapidly decreasing sequence costs have enabled the rapid expansion
Video: HIV replication/ Replication cycle of HIV

For a complete list of videos, visit our video library