Podcast
Questions and Answers
What potential problem arises from implementing taxes on negative externalities, such as tobacco tax?
What potential problem arises from implementing taxes on negative externalities, such as tobacco tax?
- Market inefficiency
- Tax evasion (correct)
- Increased consumption of negative externalities
- Decreased government revenue
What could be a consequence of a surplus in supply causing a fall in price for entrepreneurs?
What could be a consequence of a surplus in supply causing a fall in price for entrepreneurs?
- Increased consumer demand
- Lower revenue (correct)
- Expanded market share
- Market equilibrium
Why might policies to reduce consumption of over-consumed resources prove politically unpopular?
Why might policies to reduce consumption of over-consumed resources prove politically unpopular?
- Resistance from industries reliant on over-consumption (correct)
- Lack of public awareness on over-consumption issues
- Potential negative impact on economic growth
- Inefficiency of policy implementation
What does the price mechanism fail to take into account in relation to environmental issues?
What does the price mechanism fail to take into account in relation to environmental issues?
What potential problem could arise from implementing taxes on negative externalities, such as tobacco tax?
What potential problem could arise from implementing taxes on negative externalities, such as tobacco tax?
Why might volatile markets cause swings in economic fortunes?
Why might volatile markets cause swings in economic fortunes?
What does the price mechanism fail to take into account in relation to environmental issues?
What does the price mechanism fail to take into account in relation to environmental issues?
Why might policies to reduce consumption of over-consumed resources prove politically unpopular?
Why might policies to reduce consumption of over-consumed resources prove politically unpopular?
Why might volatile markets cause swings in economic fortunes?
Why might volatile markets cause swings in economic fortunes?
What could be a consequence of a surplus in supply causing a fall in price for entrepreneurs?
What could be a consequence of a surplus in supply causing a fall in price for entrepreneurs?
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