What is required for a negative externality to occur?

A) The intention or plan to directly impose costs on others
B) The full costs of an action aren't taken into account
C) A total lack of concern for other people's welfare
D) Greed

B

Economics

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Explain the idea behind the benefits-received principle of taxation and provide an example

What will be an ideal response?

Economics

Assume you have an income of $200 and you can only purchase two goods – good A and good B

If the price of good A and B are $1 and $2 how much of each good can purchase? Assume that the price of good A falls why would you now consider not only consuming more of good A but also more of good B? What's going on that might cause this behavioral response?

Economics