Explain why zoning laws, which allow certain land uses only in specifific locations, might be justifified in dealing with a problem of negative externalities. Explain why tax breaks to businesses that set up in areas of high unemployment might be justified in view of positive externalities. Explain why excise taxes on beer might be justifified in dealing with a problem of external costs.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
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Explain why zoning laws, which allow certain land uses only in specifific locations, might be justifified in dealing with a problem of negative externalities. Explain why tax breaks to businesses that set up in areas of high unemployment might be justified in view of positive externalities. Explain why excise taxes on beer might be justifified in dealing with a problem of external costs.

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