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

i         Externalities be be or pull aheads of proceeds or use of goods and improvements experienced by the society who are not straightway involved or had not paid for it. It is sometimes referred to as spillover or third-party costs or benefits. (Sloman & deoxyadenosine monophosphate; Norris 2002, p567) A benefit experienced by the society or third-party who are not directly involved when a result or service is consumed or produced by a soul or a firm is known as a arrogant externality. Ex ampereles of positive production and expending externalities are education, wellness provision, vaccination and researching of raw technologies.         Negative role 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 exter nalities created by fastball and alcohol abuse, taint from cars and motorbikes, vandalism of public property, illegal racers and drove on path and public places. (Margetts)         To decrease negative consumption externalities, the political sympathies could change magnitude the taxes or excise obligate 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 buy 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 exa! mple, if there was an increase of taxes imposed on alcohol, it would affect the wine industry and lessen their revenue. It would also affect the people who drinks unless 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 rich essay, order it on our website: OrderEssay.net

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