An article in the Economist magazine describes Pigous view of taxes and subsidies in situations where there

Question:

An article in the Economist magazine describes Pigou’s view of taxes and subsidies in situations where there is an externality in a market: “These measures would use prices to restore market perfection and avoid strangling people with red tape.

a. What does the author mean by “restore market perfection”?

b. What is “red tape”? In what sense do Pigovian subsidies and taxes avoid strangling people with red tape?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

See More Books

Question Posted: Oct 10, 2023 08:39 AM

See More Questions

An article in the Economist magazine observes: "One big reason to tie money to a commodity standard would be to limit its growth in order to protect against runaway inflation." Source: "on Gold and...
An article in the Economist notes that about 10 percent of people in the United States work in health care and that "these workers have the crucial job of making American health care more efficient,...
An article in the Economist argues that the real problem with health insurance is: The healthy people who decide not to buy insurance out of rational self-interest, and who turn out to be right. By...
Which of the following is not a strategic disadvantage of vertical integration? Vertical integration poses all kinds of capacity-matching problems (achieving the most efficient scale of operation for...
Macro Systems just paid an annual dividend of $0.32 per share. Its dividend is expected to double for the next four years (D1 through D4), after which it will grow at a more modest pace of 1% per...
Suppose you are a member of a congressional committee that is determining the type of crime that can be punishable by death. What kinds of cases, if any, would you put on the list? The killing and...
The heights (in inches) and weights (in lbs) of 8 students in a secondary school are listed. Find the coefficient of variation for each of the two data sets. Then compare the results. Heights 62 58...
Refer to the bond details in Problem. In Problem. Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2015 that pay interest semiannually on June 30 and December 31. They are issued at...
3 - The company purchasedequipment worth $ 4 1 , 0 0 0 onJuly 1 st . The equipment had a ten year life. What is the amount that should be used for the third adjusting entry provided.
The chemical firm Bayer developed a weed killer called dicamba. Dicamba is particularly useful in killing weeds in fields planted with soybeans that have been engineered to be immune to the compound....
A columnist writing for crainsnewyork.com observes that the central conclusion of the vast majority of economic work on the subject is that rent regulation leads to a deterioration of housing stock....
True or false? The atom with the largest subscript in a formula is the atom with the largest percent by mass in the compound. If true, explain why with an example. If false, explain why with an...
Electricity, Inc. had $325,000 in 2023 taxable income. Using the tax schedule below, what are the company's 2023 income taxes, average tax rate, and marginal tax rate, respectively? Taxable income $0...
(a) Show that if a square matrix A is invertible, then A" is invertible for each n N and its inverse is given by (A") = (A)". (Note that A" means the matrix A multiply by itself n times). (b) (5...
Sale-Co sells 10,000 units resulting in $100,000 of sales revenue, $40,000 of variable costs, and $45,000 of fixed costs. To achieve $170,000 in operating income, compute the dollar amount of sales...
1. How can we determine policies and standards for planning and organising construction work? Write your answer in a single sentence. 2. Mention the five (5) basic steps in planning and organisation...
Can you elucidate the intricate interplay between aerobic respiration and anaerobic metabolism, highlighting their respective biochemical pathways and the discernible disparities in energy yield per...
In 2013 and 2012 Sears Holding Corporation reported net losses and negative cash flows from operating activities. Using the companys Form 10-K for the fiscal year ended February 1, 2014 (2013),...
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
In 2012, the San Francisco Giants Major League Baseball team signed pitcher Matt Cain to a contract that paid him a salary of $20 million per year from 2013 through 2017. The annual salaries were all...
The following excerpt is from a letter sent to a financial advice columnist: My wife and I are trying to decide how to invest a $250,000 windfall. She wants to pay off our $114,000 mortgage, but Im...
Shawn Van Dyke, a construction industry consultant, wrote on a home building site: Brains do some pretty funny things when making a buying decision. If you understand your customers brain activities,...
Victor Korchnoi bought a bond one month before a semi-annual coupon was due. The face value was $10,000 and the coupon rate 8.5%. At the time of purchase there were 34 coupons left and the YTM was 6%...
4. Consider a 30-year U.S. Treasury bond paying 4.5 percent coupon, and selling for $1010. What is the yield to maturity? Make sure to show your work. 5. A 30-year U.S. corporate bond with a 6...
A project's base case or most likely NPV is $44,000, and assume its probability of occurrence is 50%. Assume the best-case scenario NPV is 65% higher than the base case and assume the worst scenario...

An article in the Economist magazine describes Pigous view of taxes and subsidies in situations where there

Question:

Step by Step Answer:

a Restore market perfection in the context of Pigous view of taxes and subsidies means correcting ma...View the full answer

Economics

Students also viewed these Business questions