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Questions and Answers
What is the effect of a tax imposed on the seller of a good?
What is the effect of a tax imposed on the seller of a good?
How does a tax affect the demand curve when the buyer pays the tax?
How does a tax affect the demand curve when the buyer pays the tax?
What happens to the amount of a good consumed if the supply and demand curves are price elastic and a tax is imposed?
What happens to the amount of a good consumed if the supply and demand curves are price elastic and a tax is imposed?
What does the imposition of externality taxes often require?
What does the imposition of externality taxes often require?
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Who postulated that externalities are a problem of unclear or inadequate property rights?
Who postulated that externalities are a problem of unclear or inadequate property rights?
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What option does a firm have if it owns the right to impose negative externalities?
What option does a firm have if it owns the right to impose negative externalities?
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Which of the following is an example of a tolerable externality?
Which of the following is an example of a tolerable externality?
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Who decides the allowable level of externality and initial rights allocation for externalities society is willing to tolerate?
Who decides the allowable level of externality and initial rights allocation for externalities society is willing to tolerate?
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What can be a possible consequence of an improperly set externality tax?
What can be a possible consequence of an improperly set externality tax?
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When externalities are considered property rights, what becomes possible?
When externalities are considered property rights, what becomes possible?
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