Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Q. Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes. a study has recommended that the government can correct for the externality effect of cigarette consumption by paying farmers not to plant tobacco used to manufacture cigarettes. it also recommends raising the funds to make these payments by increasing taxes on cigarettes. Assuming that the government is correct that cigarette smoking creates external costs, evaluate whether the study's recommended policies might help correct this negative externality

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9722053

Have any Question?


Related Questions in Business Economics

How would i find out this probability i keep getting -1 and

How would I find out this probability? I keep getting -1 and that is not the right answer. It says the right answer is 0.1587 but I dont see how For X~ Normal(100, 10), What would be the probability that x is less than 9 ...

A sample of 1000 crop-eating beetles are collected and

A sample of 1,000 crop-eating beetles are collected and closed and dosed with a new pesticide. Researchers count dead beetles to measure toxicity of the pesticide, finding that 639 beetles die after being dosed. the samp ...

All of the following are examples of positive statements

All of the following are examples of positive statements EXCEPT: Higher interest rates reduce construction activity. Higher interest rates are achieved by slowing the growth of the money supply. Economic output should no ...

Heightnbspinnbspinchesnbsp69nbsp67nbsp69nbsp71nbsp70nbsp72nb

Height in inches  69  67  69  71  70  72  Weight in lbs  164  161  189  192  184  198  a) Find the equation of the regression line with height as the explanatory variable and use the regression line to find the predicted ...

Suppose the restaurant industry is perfectly competitive

Suppose the restaurant industry is perfectly competitive and all producers have identical cost curves. The industry is currently at a long-run equilibrium, with each firm producing at its minimum long run average total c ...

Define the international fisher effect and explain the fact

Define the international Fisher Effect and explain the fact of how it occurs. Is there any deviation from it?

Why does a government undertakes expansionary fiscal

Why does a government undertakes expansionary fiscal policy? What are the problems of undertaking expansionary fiscal policy? When is fiscal policy more appropriate than monetary policy?

A box containsnbsp22nbspred marblesnbsp52nbspwhite marbles

A box contains 22 red marbles, 52 white marbles, and 10 blue marbles. If a marble is randomly selected from the box, what is the probability that it is red or blue? Express your answer as a simplified fraction or a decim ...

Manny moe and jack have the following demand curves for

Manny, Moe and Jack have the following demand curves for pears: QManny = 100 - 2P = 70 - 2P + 10 Ppear + .25 YManny where P Pear = 2 and YManny = 40. QMoe = 300 - 4P = 80 - 4P + 35 Ppear + .75 YMoe where P Pear = 2 and Y ...

Let x y z be independent discrete random variableslet a xyz

Let X, Y, Z, be independent discrete random variables. Let A= X(Y+Z) and B= XY With A, B, X, defined as before, determine wheter the folllowing statements are true or false. 1. A and B are independent 2. A and B are cond ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As