Answer to Question #91981 in Economics for arab

Question

Compare and contrast using Pigouvian taxes to address opioids vs. offering access to preventive services for opioids. explain

Answer 1

A Pigovian tax is a tax on any market activity that generates negative externalities. 

Pigouvian taxes to address opioid will be efficient only if you can legally buy them, otherwise the will be under the law and won't be under taxation.

Offering access to preventive services for opioids may be much more efficient, because it can prevent using opioids.