The main purpose of Pigouvian taxes is to oppose market inefficiencies by increasing the marginal private cost by the amount generated by the negative externality. In such a case, the final cost (original cost plus tax) will reflect the full social cost of theeconomic activity. Subsequently, the...
In order to calculate and to manage this climate rent appropriately, common policy instruments like Pigouvian taxes or emissions trading presume perfect information about resource demand, extraction costs, reserve sizes, and damages for the entire planning horizon. To reduce these informational ...
How are returns to scale calculated? What are the factors that will affect the total revenue? Like business, what would be the economic impact if individuals are also paid tax on profit/saving, then income? What is "The Multiplier"? Explain how to calculate it. What is the importance of ...
Data at the six digit NAICS/year level can be used to calculate energy efficiency gains over time and to compare energy efficiency across industries. See https://www.nber.org/research/data/nber-ces-manufacturing-industry-database. 5 While research on fuel economy impacts for airlines is scarce...
Answer to: To control pollution, the government is thinking to impose a tax on those who are responsible. How will the optimal amount of tax be...
Data at the six digit NAICS/year level can be used to calculate energy efficiency gains over time and to compare energy efficiency across industries. See https://www.nber.org/research/data/nber-ces-manufacturing-industry-database. 5 While research on fuel economy impacts for airlines is scarce...
Calculate the marginal propensity to consume if the marginal propensity to save is 0.25. Explain what this value of the MPC means. Explain, in your own words, the concept of diminishing marginal returns. What is Diminishing Marginal Productivity...
Learn more about this topic: Deadweight Loss in Economics | Definition, Formula & Examples from Chapter 3 / Lesson 24 305K Deadweight loss definition. Learn how to calculate deadweight loss using the deadweight loss formula & deadweight loss ...