frannnvisconti
Posts: 1
Joined: Jul 4,2017

Tue Jul 4,2017 10:19 PM

Hi! I need to hand in my first copy of the micro IA, and i chose an article that is the effect of the taxes on tobacco. Does this fall into externalities (market failure) or Indirect Taxes (gov intervention)???
Please help!!!




haniabar
Posts: 10
Joined: May 11,2017

Tue Jul 4,2017 10:59 PM

Both - taxation/other forms of gvt intervention are a means of attempting to correct or alleviate the negative externality of the market failure of the overconsumption of a demerit good/cigarettes!
frannnvisconti
Posts: 1
Joined: Jul 4,2017

Tue Jul 4,2017 11:57 PM

Thank you!

Quick Reply

 

Return to Economics and Business & Management