Click the Study Aids tab at the bottom of the book to access your Study Aids (usually practice quizzes and flash cards).
Study Pass is our latest digital product that lets you take notes, highlight important sections of the text using different colors, create "tags" or labels to filter your notes and highlights, and print so you can study offline. Study Pass also includes interactive study aids, such as flash cards and quizzes.
Highlighting and Taking Notes:
If you've purchased the All Access Pass or Study Pass, in the online reader, click and drag your mouse to highlight text. When you do a small button appears – simply click on it! From there, you can select a highlight color, add notes, add tags, or any combination.
If you've purchased the All Access Pass, you can print each chapter by clicking on the Downloads tab. If you have Study Pass, click on the print icon within Study View to print out your notes and highlighted sections.
To search, use the text box at the bottom of the book. Click a search result to be taken to that chapter or section of the book (note you may need to scroll down to get to the result).
View Full Student FAQs
Chapter 5 Government Interventions
We have so far focused on unimpeded markets, and we saw that markets may perform efficiently.The standard term for an unimpeded market is a free market, which is free in the sense of “free of external rules and constraints.” In this terminology, eBay is a free market, even though it charges for the use of the market. In this and subsequent chapters, we examine impediments to the efficiency of markets. Some of these impediments are imposed on otherwise efficiently functioning markets, as occurs with taxes. Others, such as monopoly or pollution, impede efficiency in some circumstances, and government may be used to mitigate the problems that arise.
This chapter analyzes taxes. There are a variety of types of taxes, such as income taxes, property taxes, ad valorem (percentage of value) taxes, and excise taxes (taxes on a specific good like cigarettes or gasoline). Here, we are primarily concerned with sales taxes, which are taxes on goods and services sold at retail. Our insights into sales taxes translate naturally into some other taxes.