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How Do Direct Controls and Specific Taxes Affect Negative Externalities

question 34

Essay

How do direct controls and specific taxes affect negative externalities? Briefly explain in terms of supply and demand.


Definitions:

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.

Threat

a potential cause of harm or adverse effect on someone or something.

Raise Request

A formal or informal petition for an increase in salary or wages.

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