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Short Answer: Briefly define each of the following terms or phrases and briefly explain why it matters for tax policy.
1) Horizontal Equity
2) Source Based Taxation
3) Comprehensive income base
4) Tax deduction
If the original supply curve of cocaine on the streets was horizontal, what is the net effect of police activities on the market for crack in this city. Compute the value for p that prevails before police intervention in the market.
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased.
Suppose the market for milk. For each of the following events, state whether it affects supply or demand, which direction supply or demand shifts, the effect on price, and the effect on quantity.
Equivalent to selecting the output where the spread between total revenue and total cost is greatest.
Illustrate types of government programs would be most effective in combating each type of unemployment.
The government wants to eliminate the inflationary gap by changing expenditures. What policy do you suggest? By how much will unemployment change after you policy has taken effect?
Illustrate what output would be produced, Illustrate what would total profits be also Illustrate what rate of return would the firm earn in its asset base.
When one person saves, that person's wealth is increased, meaning that he or she can consume more in future. But when everyone saves, everyone's income falls, meaning that everyone must consume less today. Explain this seeming contradiction.
Does the covered interest parity condition hold? Why or why not?b. How could you make a riskless profit without any money tied up assuming that there are no transaction costs in buying and or selling foreign exchange?
Illustrate what "alternative procedures" or unorthodox methods can be used to get around steps in the traditional process, especially for priority or controversial bills.
Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.
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