Should the government consider subsidizing lojack purchases

Assignment Help Business Economics

Reference no: EM13859424

The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90 percent of LoJack-equipped cars that are stolen but also arrest many auto thieves and shut down many "Chop shops" that take apart stolen vehicles to get at their used parts. Thus, LoJack provides both private benefits and positive externalities.

Should the government consider subsidizing LoJack purchases? Explain your answer in paragraph format.

Reference no: EM13859424

Questions Cloud

Government to regulate the activities to businesses : What is the rationale for government to regulate the activities to businesses? How is our economic and social existence shaped by government regulations?

How consumption changes when real disposable income changes : Confused and cannot find much information about the Keynesian model? According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes?

Original budget line under negative income tax : Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. On a single graph, draw t..

Stock-based mutual fund : You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should earn (on average) 9% per year over a long period of time. How much will your investment be worth in 35 years?

Should the government consider subsidizing lojack purchases : The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90 percent of LoJack-equipped cars that are stolen but also arrest many auto thieves and shut down many "Chop shops" that take apart stolen vehi..

Wealth tax-on building-machinery and equipment : In 2012, a group in Germany proposed a “wealth tax” -- on building, machinery and equipment—that would be levied on all employers having at least $1.4 million invested in such assets. Use the labor market theory learned in this chapter to analyze the..

Using annual compounding-future value-present value : If one country has per capita income of $15, 000 and its economic growth rate is 5 percent per year, what will its per capita income be in 10 years? About how many years will it take to catch up to a country where the per capita income is $30, 000 pe..

Marginal cost of filling out tax returns : Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1

Compare the plans in terms of scale and substitution effects : Suppose the government of Washington is considering the addition of a new tax on firms. You have been called in to provide expert analysis on how such a tax would affect employment of labor. Compare the plans in terms of their scale and substitution ..

User Account

All Pages