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Inez Is Planning a Cruise for Her Family's Upcoming Reunion

question 107

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Inez is planning a cruise for her family's upcoming reunion. She wants to show family members pictures of the different cabins that are available, so she adds them to slides in a presentation. One of the images shows two views of the same room combined into one picture. Inez thinks this is confusing. Which of the following actions can she take to address this?


Definitions:

Externalities

Costs or benefits arising from an economic activity that affect bystanders and are not reflected in market prices.

Distortionary Taxes

Taxes that cause changes in behavior and decision-making, leading to inefficiencies in the market.

Nonneutral Taxes

Taxes that disproportionately affect one group or type of economic activity over another, often used to influence market outcomes.

Second Best

A situation or solution that is accepted in the absence of a preferred option.

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