Question54 Who wins from implementing an output tax on a good with negative environmental externality? Producers Government Consumers All of the other options ResetMaximum marks: 1 Flag question undefined单项选择题
A
Producers
B
Government
C
Consumers
D
All of the other options

Question

Question54 Who wins from implementing an output tax on a good with negative environmental externality? Producers Government Consumers All of the other options ResetMaximum marks: 1 Flag question undefined单项选择题

A

Producers

B

Government

C

Consumers

D

All of the other options

BlackTom AI · Accepted Answer

In evaluating who benefits from imposing an output tax on a good with a negative environmental externality, we need to consider the incentives and transfers involved.
Option 1: Producers. An output tax raises production costs, which typically reduces output and profitability for producers. While some producers might benefit indirectly from reduced external damages if demand adjusts, the standard effect is a burden on producers due to higher costs, not a net gain for them. Therefore, producers are unlikely to be the group that 'wins'.
Option 2: Government. A tax levied on the output of the good generates government revenue, which can be used for public goods or to fund environmental remediation. Additionally, by internalizing the negative externality, the tax helps align private costs with social costs, potentially reducing social harm. This revenue-raising and corrective effect makes the government a beneficiary of such policy.
Option 3: Consumers. Consumers typically face higher prices and possibly reduced availability as producers pass some or all of the tax burden through to prices. While there may be some long-run benefits if reduced environmental damage lowers other costs, the direct effect is usually a higher price for consumers, not a win for them.
Option 4: All of the other options. Since the previous options are not all benefiting (producers and consumers generally bear costs rather than gain), this option is inaccurate.
In summary, the standard analysis of an output tax on a polluting good emphasizes revenue collection for the government and improved social welfare through internalizing externalities, while imposing costs on producers and potentially higher costs for consumers. This aligns with the view that government gains from such a policy.

Question54 Who wins from implementing an output tax on a good with negative environmental externality? Producers Government Consumers All of the other options ResetMaximum marks: 1 Flag question undefined单项选择题

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Question54 Who wins from implementing an output tax on a good with negative environmental externality? Producers Government Consumers All of the other options ResetMaximum marks: 1 Flag question undefined单项选择题

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