Question

Within Topics 8/9 we learned that the government sometimes taxes goods or services in order to decrease consumption (ex. Tobacco and alcohol products). Identify a good or service that is not currently subject to an excise tax but could be, because it is harmful in some way. Explain why the good or service you identify is harmful and why less consumption would be a desirable outcome for society. Finally, analyze whether the tax you propose is realistic or likely and why. 50 words min.

Answer 1

In conclusion it can be said that goods that generate positive externalities are under produced in the free market due to the fact that they are undervalued by both consumers and firms in the economy. .

Step-by-step explanation: