Question

Describe the role of state in correction of externalities

Answer 1

Answer:

A corrective tax is a market-based policy option used by the government to address negative externalities. Taxes increase the cost of producing goods or services generating the externality, thus encouraging firms to produce less output..

#⃣❤#⃣❤#⃣❤#⃣

Explanation:

#⃣❤#⃣❤#⃣#⃣❤❤

Answer 2

Answer:

A corrective tax is a market-based policy option used by the government to address negative externalities. Taxes increase the cost of producing goods or services generating the externality, thus encouraging firms to produce less output.