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Tuesday, February 11, 2014

Describe and evaluate economic measures that can be used to reduce negative consumption and negative production externalities ...

i         Externalities ar be or pull aheads of return or use of goods and improvements experienced by the society who are non straightway involved or had not stipendiary for it. It is sometimes referred to as spillover or third-party costs or benefits. (Sloman & ampere; Norris 2002, p567) A benefit experienced by the society or third-party who are not directly involved when a harvest-tide or service is consumed or produced by a person or a firm is known as a arrogant externality. Examples of positive production and expending externalities are education, wellness provision, vaccination and researching of raw technologies.         Negative ingestion externalities occur when the costs of consumption is borne by other lot other than the consumer. (Sloman & Norris 2002, p271) The society would therefore prefer lesser of these kinds of goods and services to be consumed. Examples of negative consumption externalities are negative externaliti es created by grass and alcohol abuse, taint from cars and motorbikes, vandalism of public property, illegal racers and flock on path and public places. (Margetts)         To decrease negative consumption externalities, the disposal could change magnitude the taxes or excise impose on these goods or services. (Hall 1996) change magnitude the taxes on these goods or services would cause the price to rise. This would indeed discourage the consumers from get it or decrease the amount which they would or could buy. With the increase in taxes, there would be more tax revenue for the government to spend on. However, this might stir other consumers and accepted firms in the industry. For example, if there was an increase of taxes imposed on alcohol, it would affect the booze industry and lessen their revenue. It would also affect the people who drinks scarcely moderately and who had not caused any problems to the society. Increasing taxes on the goods does not necessary mean that people... ! If you want to get a affluent essay, order it on our website: OrderCustomPaper.com

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