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To what extent is an increase in taxes an effective way to correct a negative externality of consumption in the case of tobacco.

Negative externality of consumption is a type of market failure in which Marginal Private Benefit (MPB- the demand of consumers at present situation) is higher than Marginal Social Benefit (MSB- the deman...

Answered by Evangelia Vasiliki K. • Economics tutor

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Anne and Mary invest 4000 in their own projects. They get 400 and 600 cash flow annually, respectively. However, Mary's cash flows are to be discounted by 8%. Who has the shorted pay back period? Why is Mary's cash flow prediction more reliable?

Anne's cash flows are not discounted. 4000 divided by 400 is 10, and so, Anne's payback period is 10 years.
Mary's cash flows are discounted by 8%, so:1st year: 600 / 1.08 = 555.562nd year: 600 / 1.0...

Answered by Sharaf M. • Business Studies tutor

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A government decides to Impose an indirect tax on fast food. Discuss the effects for the stakeholders in these markets.

First, we must begin by defining an indirect tax. An indirect tax is a tax that is levied on a particular good, making it a tax that taxes consumers based on their consumption choices. Issuing an indirect...

Answered by Mordecai C. • Economics tutor

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What is the meaning of the term "Specific Heat Capacity"?

Specific Heat Capacity is the amount of energy required to increase the temperature of 1kg of a substance by 1 degree Kelvin/Celsius ."Specific" refers to the fact that this value is per kilogra...

Answered by Daragh M. • Physics tutor

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Which realist explanations of international relations does liberalism accept and which does it reject?

This question could be asked at the beginning of paper one based on one of the sources provided in the exam paper. An example of an answer could be:There are multiple intersections where liberalism accept...

Answered by Ella B. • Politics tutor

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