Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. since both taxes and subsidies create a deadweight

Since both taxes and subsidies create a deadweight loss to society, why are they used to...

70.2K

Verified Solution

Question

Economics

Since both taxes and subsidies create a deadweight loss tosociety, why are they used to correct negative and positiveexternalities? Ensure to explain whether society is better off orworse off and why.

Answer & Explanation Solved by verified expert
4.2 Ratings (814 Votes)
Taxes and subsidies create deadweight loss when used in isolation but in the context of externalities taxes and subsidies are used to correct the market If not done then it will create a market failure that    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Suppose the average yearly salary of an individual whose final degree is a master's is $3333...

Basic Math
1.2K views

Given a standard normal variable, what is the probability Z is greater than 1.25? Round to...

Medical Sciences
1.2K views

Describe the components and general function of the basal ganglia and limbic system, midbrain, and hindbrain.

Biology
1.2K views

You are working for a state environmental agency You tested the water in Lake Eola...

Physics
1.2K views

In a double slit experiment the distance between the slits is d The screen is...

Basic Math
1.2K views

A 6-sided die is rolled. The set of equally likely outcomes is {1,2,3,4,5,6). Find the...

Calculus
1.2K views

Use the following matrices to compute the expression AB 312 2 2 1 3 0...

Calculus
1.2K views

estion 3 Determine a and b in such a way that the given function f...

Calculus
1.2K views

Consider a W N weight suspended by two wires as shown in the accompanying figure...

Algebra
1.2K views

Consider the first six terms of this sequence 3 6 12 24 48 96 What...

Accounting
1.2K views

Q20: A costing worksheet for a contractor is likely to include sections for:a. direct materials.b....

Accounting
1.2K views

Income Statement, Direct and Indirect Cost Concepts, Service Company Lakeesha Barnett owns and operates a...