market failure Flashcards
(7 cards)
1
Q
tax per unit
A
specific tax
2
Q
tax as a percentage of price
A
ad valorum tax
3
Q
what affects effectiveness of a tax or subsidy
A
PED
4
Q
Weitzman study
A
whether taxing prices or quantities was more likely to lead to a good outcome for total social welfare - if uncertainty then quantity is better
5
Q
what taxing price or quantity would depend on
A
elasticity of marginal cost curve
6
Q
examples of tax on quantity
A
quotas
prohibitation
7
Q
A
