« previous next »

Author Question: When external costs are present and government imposes a tax equal to the external marginal cost, ... (Read 122 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?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Use an Automated External Defibrillator Use an Automated External Defibrillator
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
Tuition Costs Tuition Costs
Present Value Formula: Amortization Schedule Present Value Formula: Amortization Schedule
A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her
Video: Stroke volume - contractility definition

For a complete list of videos, visit our video library