Stuck on a question? Tell us what our next Office Hours video should be!

External cost vs. external benefit

In the practice questions for the External Benefit video, you give us two scenarios. I think I understand how to calculate the size of the externality but can you go over how to decide whether a tax or subsidy is best to address each scenario?

I saw a similar question on a quiz I took recently in class and want to make sure I have this down before my final.

2 votes
Sign in
(thinking…)
Password icon
Signed in as (Sign out)

We’ll send you updates on this idea

Tyler shared this idea  ·   ·  Flag idea as inappropriate…  ·  Admin →

0 comments

Sign in
(thinking…)
Password icon
Signed in as (Sign out)
Submitting...

Feedback and Knowledge Base