An externality occurs when:
a. people other than those making the demand and supply decisions share the benefits or the costs of an activity.
b. only the people making the demand and supply decisions share the benefits or the costs of an activity
c. private costs of production equal the full social costs associated with production of a good.
d. private costs of production are ignored.
a
Economics
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The Community Charge was a poll tax to fund local government in the United Kingdom, instituted in 1989 by the government of Margaret Thatcher. It replaced the rates that were based on the national rental value of a house
It was a fixed tax per adult resident. Is this tax a proportional, progressive or regressive tax? Explain your answer.
Economics
In the IS-LM-PC model, which of the following is assumed to be exogenous?
A) G B) C C) I D) Y
Economics