Economics A Level (DONEEEEEEE): What is the Purpose of Governments using Taxation [On Goods]

Question

What is the Purpose of Governments using Taxation [On Goods]

eric_galvao · Accepted Answer

-This is to Cover the Cost of the Externalities it makes [Demerit Goods]
-Taxes will make Revenue for the Government that can Offset the Consequences of the Externalities. This can also lead to the Disincentive of Production of Demerit Goods

Economics A Level (DONEEEEEEE)

What is the Purpose of Governments using Taxation [On Goods]

-This is to Cover the Cost of the Externalities it makes [Demerit Goods] -Taxes will make Revenue for the Government that can Offset the Consequences of the Externalities. This can also lead to the Disincentive of Production of Demerit Goods

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