6. One rationale for imposing taxes on alcohol con- sumption is that people who drink alcohol impose negative spillovers on the rest of society- for example, through loud and unruly behavior or intoxicated driving. If this rationale is correct, in the absence of governmental taxation, will people tend to consume too much, too little, or the right amount of alcohol?
6. One rationale for imposing taxes on alcohol con- sumption is that people who drink alcohol impose negative spillovers on the rest of society- for example, through loud and unruly behavior or intoxicated driving. If this rationale is correct, in the absence of governmental taxation, will people tend to consume too much, too little, or the right amount of alcohol?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 7PA
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