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
Check!
(thinking…)
Reset
or sign in with
  • facebook
  • google
    Password icon
    I agree to the terms of service
    Signed in as (Sign out)

    We’ll send you updates on this idea

    Tyler shared this idea  ·   ·  Admin →

    0 comments

    Sign in
    Check!
    (thinking…)
    Reset
    or sign in with
    • facebook
    • google
      Password icon
      I agree to the terms of service
      Signed in as (Sign out)
      Submitting...

      Feedback and Knowledge Base