Comment on the following statement. "Taxing externality-producing activities may not eliminate damages."
What will be an ideal response?
Taxes on these activities are not designed to eliminate externalities; they are simply meant to force decision makers to consider the full costs of their decisions. Even if we assume that a tax correctly measures all the damage done, the decision maker may find it advantageous to continue causing the damage.
Economics
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The situation where women tend crops and raise children while men hunt is often found in a
a. mixed economy b. market economy c. command economy d. traditional economy
Economics
In the United States, which factor of production earns the largest share of the nation's total income?
What will be an ideal response?
Economics