Author Question: What is a Pigovian tax? What happens to deadweight loss when a Pigovian tax is implemented? What ... (Read 94 times)

stephzh

  • Hero Member
  • *****
  • Posts: 556
What is a Pigovian tax? What happens to deadweight loss when a Pigovian tax is implemented?
 
  What will be an ideal response?

Question 2

The income elasticity of demand measures
 
  A) the income effect of a change in price.
  B) the responsiveness of quantity demanded to changes in income.
  C) how a consumer's purchasing power is affected by a change in the price of a product.
  D) the percentage change in the price of a product divided by the percentage change in consumer income.


Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

A Pigovian tax is a government tax intended to bring about an efficient level of output in the presence of externalities. A Pigovian tax eliminates deadweight loss.

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

For a complete list of videos, visit our video library