Search results
Results From The WOW.Com Content Network
Market incentives, such as reflected in prices of outputs and inputs, are theorized to attract factors of production, including labor, into activities according to comparative advantage, that is, for which they each have a low opportunity cost. The factor owners then use their increased income from such specialization to buy more-valued goods ...
Economist Arthur Pigou used the concept of externalities developed by Alfred Marshall to suggest that taxes and subsidies should be used to internalise costs that are not fully captured by existing market structures. [4] In his honour, these have been named Pigouvian taxes and subsidies. [5]
A production subsidy encourages suppliers to increase the output of a particular product by partially offsetting the production costs or losses. [12] The objective of production subsidies is to expand production of a particular product more so that the market would promote but without raising the final price to consumers.
Tariffs projected to cost $2,600 per household. A tariff is a fee on imports, which proponents believe helps domestic manufacturers. Trump has proposed a 10% to 20% tariff on all $3 trillion per ...
Supply-side economics is a macroeconomic theory postulating that economic growth can be most effectively fostered by lowering taxes, decreasing regulation, and allowing free trade. [1] [2] According to supply-side economics theory, consumers will benefit from greater supply of goods and services at lower prices, and employment will increase. [3]
Some environmental economists have proposed that efficiency gains be coupled with conservation policies that keep the cost of use the same (or higher) to avoid the Jevons paradox. [8] Conservation policies that increase cost of use (such as cap and trade or green taxes) can be used to control the rebound effect. [9]
The government levies heavy taxes on cigarettes to keep prices artificially high in an effort to discourage tobacco use. The law of demand, after all, says that when prices rise, willing buyers ...
Long lines of cars and trucks quickly appeared at retail gas stations in the U.S. and some stations closed because of a shortage of fuel at the low price set by the U.S. Cost of Living Council. The fixed price was below what the market would otherwise bear and, as a result, the inventory disappeared.