External Social Cost: Should the Government Tax Donuts?
Not what you're looking for?
Given the nation's problems with obesity and the associated use of health care resources, is it appropriate for the government to use taxes and/or subsidies to encourage healthier diets? For example, there might be a tax on donuts, or subsidies on fresh vegetables. Explain.
Purchase this Solution
Solution Summary
This solution addresses whether or not it is appropriate for the government to combat obesity by taxing donuts or subsidizing vegetables.
Solution Preview
Yes, it is appropriate. People's unhealthy food choices create external costs to society. For example, a person ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.