Question

Taxes can have intended and unintended consequences, which of the following items have unintended consequences Smoking...

Taxes can have intended and unintended consequences, which of the following items have unintended consequences

Smoking tax reduces the social cost of health insurance

Apartment tax in cities increases the number of people living in suburbs thereby increasing social costs (transportation needs, pollution, new schools, etc.)

Gasoline tax decreases air polution

Carbon tax decreases the use of carbon and increases the use of carbon free nuclear energy

Homework Answers

Answer #1

Answer: Apartment tax in cities increases the number of people living in suburbs thereby increasing social costs (transportation needs, pollution, new schools, etc.)

In the social sciences, unintended consequences (sometimes unanticipated consequences or unforeseen consequences) are outcomes of a purposeful action that are not intended or foreseen. Thus when an apartment tax is imposed transportation needs, pollution, etc are not foreseen as these are not the direct outcomes of tax.

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