Why does the government chose to place an excise tax

Assignment Help Microeconomics

Reference no: EM132780796

Question: Why does the government chose to place an excise tax (tax on manufacturing) on goods such as cigarettes, alcohol, and tobacco in Canada? All of these consumer goods are vastly cheaper in the United States.

Why not tax goods such as legos, orange juice, and glazed donuts? Try you best to explain your answer in terms of elasticity and add other reasons that you feel might play a factor.

Do some research into Chapter 5, where does this argument stand in the efficiency vs equity argument?

Chapter 5 of Micro economics Canada in the global environment 10th edition.

Reference no: EM132780796

Questions Cloud

Calculate the estimated inventory for Year Ended December : Calculate the estimated inventory for the Year Ended December 31st, 2021, assuming that the gross profit is 30.0% of sales

Concept of incurred costs in software development : The concept of incurred costs in software development when a limited or inefficient solution is chosen over a better development approach

Compute the required rate of return : The Common Stock of Drumman Co. is selling for $50 per share. If the recent dividend of $2.50 is expected to grow at a constant rate of 5% in the future.

How should backup media be secured : Search "scholar.google" for a company or school that has reported issues, problems, concerns about their backup procedures. Discuss the issue of securing.

Why does the government chose to place an excise tax : Why does the government chose to place an excise tax (tax on manufacturing) on goods such as cigarettes, alcohol, and tobacco in Canada

Calculate amount that concord should report as a deferred : 25% for 2021 and 2022, and 30% for 2023. Calculate the amount that Concord should report as a deferred tax asset or liability at December 31, 2020.

What is the purpose of a balanced portfolio : What is the purpose of a balanced portfolio? How do various investments react when the stock market goes down? Goes up? Please give use examples in the answer.

How many rounds it will take to put a deck back : Write a program to determine how many rounds it will take to put a deck back into the original order. This will involve creating a data structure to represent.

Find output of private goods and services : As productive resources and technological know-how increase, a nation's production-possibility curve shifts outward. Use a production-possibility curve

User Account

All Pages