The Rand Corporation estimates that the external costs imposed by alcohol consumption (for example, deaths caused by drunk drivers) to be 48 cents per ounce consumed. Taxes on alcohol amount to 23 cents per ounce consumed. This information suggests: (i) alcohol is overconsumed; (ii) alcohol taxes should be raised. Which of these statements is correct?
a. i and ii
b. i not ii
c. ii not i
d. neither i nor ii
a
Economics
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A) externalities. B) transactions costs. C) property rights. D) overall consumption.
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Households are buyers in factor markets and sellers in goods markets
Indicate whether the statement is true or false
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