A. Explain how market based policies can be used to correct negative production"
Answers
Answered by
0
Policies to overcome market failure
Taxes on negative externalities
Subsidies on positive externalities
Laws and Regulations
Electronic Road Pricing – a specific tax related to congestion
Pollution Permits – giving firms the ability to trade pollution permits.
Advertising: Government campaigns to change people’s preferences.
Nudges – use of behavioural economics
Buffer stock schemes – Government price control to try to stabilise prices.
Changes in Property Rights – Coase theorem
Policies to overcome poverty/inequality – inequality can be seen as type of market failure
Policies to reduce unemployment – policies to overcome market failures, such as geographical and occupational immobilities.
Taxes on negative externalities
Subsidies on positive externalities
Laws and Regulations
Electronic Road Pricing – a specific tax related to congestion
Pollution Permits – giving firms the ability to trade pollution permits.
Advertising: Government campaigns to change people’s preferences.
Nudges – use of behavioural economics
Buffer stock schemes – Government price control to try to stabilise prices.
Changes in Property Rights – Coase theorem
Policies to overcome poverty/inequality – inequality can be seen as type of market failure
Policies to reduce unemployment – policies to overcome market failures, such as geographical and occupational immobilities.
Similar questions