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 business or use of goods and improvements experienced by the society who are non straightway involved or had not salaried for it. It is sometimes referred to as spillover or third-party costs or benefits. (Sloman & angstromere; Norris 2002, p567) A benefit experienced by the society or third-party who are not directly involved when a ware or service is consumed or produced by a somebody or a firm is known as a arrogant externality. Examples of positive production and expending externalities are education, health provision, vaccination and researching of raw technologies.         Negative employment 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 externalities created by fastball and alcohol abuse, taint from cars and motorbikes, vandalism of public property, illegal racers and swarm on path and public places. (Margetts)         To decrease negative consumption externalities, the governing body could change magnitude the taxes or excise oblige 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 acquire it or decrease the amount which they would or could buy. With the increase in taxes, there would be more tax revenue for the gove rnment to spend on. However, this might sti! r 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 all 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 honest essay, order it on our website: OrderCustomPaper.com

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