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An increase in taxation reflects tighter fiscal policy, reducing the take home pay of those employed. This will reduce the amount of income that households are willing to spend on goods and services in th...
A sugar tax would be a direct tax that would increase the price of fizzy drinks such as diet coke for consumers. This would make it more expensive for consumers to purchase fizzy drinks and would therefor...
Pollution from petrol cars is an example of a negative externality (where the actions of one person impact another without the affected person being compensated). In a competitive economy people pay the &...
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