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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Advantages of Indirect Taxes?

Author: eric_galvao



Answer:

-Cost of Negative Externalities is Taking into Account in the Price of the Good. This can Reduce Demand, and therefore the Level of Production - Reducing the Negative Externalities therefore -Even if Demand isn't Changed, Revenue is still Generated to the Government from the Tax, meaning the Government can Offset it through other Means - Fund other Projects


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