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Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
Other taxes are typically used to cover general spending, but funds from corrective taxes can only be used to alleviate pollution
Corrective taxes bring the allocation of resources closer to the social optimum, and thus improve economic efficiency
Other taxes get passed on from businesses to consumers, whereas corrective taxes do not
Correct taxes alter incentives, whereas other taxes typically do not.
What would happen if suppliers charge less than the equilibrium price for your good or service.
q1. suppose as in the federal income tax code for the united states that the representative consumer faces a wage
what is the largest value that the Herfindahl index could possibly take for car dealers in your area? In that same situation, what would the four-firm concentration ratio be?
Illustrate what is the economy's MPC? It's MPS. Illustrate what was the APC before the increase in disposable income.
An advertising campaign that makes people more aware of the benefits of chiropractic care
q1. assume that serendipity bank has overload reserves of 8000 and checkable deposits of 150000. if preserve ratio of
Impact of Monetary Policy How does the Fed’s monetary policy affect economic conditions? Trade-offs of Monetary Policy Describe the economic trade-off faced by the Fed in achieving its economic goals.
Machine A was purchased three years ago for $10,000 and had an estimated market value of $1,500 at the end of its 10-year life. Annual operating costs are $1,250. The machine will perform satisfactorily for the next seven years. what is the differenc..
If market inverse demand is p(Q)=a-bQ and the firm produces according to TC(Q)=cQ+dQ2, determine the firm's optimal quantity, price and profit level. (Assume that a,b,c,d >0.) What conditions on b and d must hold in equilibrium?
Neville has demand function q = .02m - 2p, where m is income and p is price. Income is $8,000 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $80. The substitution effect of the price change is?
Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Derive algebraically the quantities..
Research deflation in Japan and explain what happened to the equilibrium price level in Japan during the early 2000s. How did Japan's equilibrium price level adjust between the middle of 2008 and early 2010?
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