Explain intuitively why consumers are always happier for any given amount of total tax revenue if...
Explain intuitively why consumers are always happier for any given amount of total tax revenue if it is financed with similar tax rates on all items, rather than taxing only certain items.
Homework Answers
When tax is imposed on certain items, consumers feel that only a few people are liable to pay the tax and all will enjoy the benefits of such tax. Thus, few consumers who pay the tax do not feel happier since benefits are distributed to such people who even do not pay the tax.
Furthermore, if taxes are paid by all members, then people would not feel the pinch of tax as these costs and benefits of taxation are distributed equally over the people.
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Explain intuitively why consumers are always happier for any
given amount of total tax revenue if...
(a) Using the graph of a demand curve, intuitively explain why marginal revenue is always less th...
(a) Using the graph of a demand curve, intuitively explain why marginal revenue is always less than the price. (b) Prove the result from part (a) formally. (you can use any of the equations obtained in class).
Use the Law of Demand to explain why all consumers must receive a surplus whenever they...
Use the Law of Demand to explain why all consumers must receive a surplus whenever they purchase more than one unit of a product but may receive no surplus if only one unit is bought. Make up a numerical example to illustrate. Provide two reasons why consumer surplus must increase when the price of a product falls? Explain fully why taxing a product leads to deadweight loss. Use appropriate graphs to explain why the deadweight loss is greater the more...
For tax purposes, "gross income" is all the money a person receives in a given year from any sour...
If any could please help with
question E & F
Answer for Question C is $37,500
For tax purposes, "gross income" is all the money a person receives in a given year from any source. But income taxes are levied or "taxable income" rather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $50,000 last year in wages, earned $10,000 from investments, and were given...
Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why,...
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2019 Tax Bill Please compute the total tax due (April 30th, 2020) for the following single...
2019 Tax Bill Please compute the total tax due (April 30th, 2020) for the following single (non-senior, nonmarried) resident of Ontario. During the 2019 tax year, they earned $160,000 in (gross) T4 employment income. From this sum, $40,000 was deducted by their employer (for provincial and federal taxes) at source and remitted to the Canada Revenue Agency, which may or may not be enough to cover their tax bill. They also paid the full Canadian Pension Plan (CPP) premiums and...
Question 5 What can be used to explain why countries may not always benefit from the...
Question 5 What can be used to explain why countries may not always benefit from the specialization in producing fewer goods and services? Question 5 options: For a given firm, producing at an extremely high scale may embrace higher average cost of production. For a given firm, producing at an extremely high scale should cause the total production cost to be greater than the total revenue. For a given country, producing fewer products at extremely high production scales should lower...
Macroeconomics When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from th
When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.Consider a...
4. (20 points) Suppose that, in the basic one-period model, there is no government spending and...
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11. The goals of optimal income taxation include all of the following EXCEPT: a. maximizing tax...
11. The goals of optimal income taxation include all of the following EXCEPT: a. maximizing tax revenue. b. minimizing the distortions due to taxation. c. maximizing the nation's social welfare function. d. achieving vertical equity. 12. Suppose that the elasticities of demand for apples, bananas, and peaches are –0.9, –1.6, and –0.8, respectively. Assume that all else is identical in these three products and that an identical tax is levied on each good. Rank the products from highest to lowest...
please explain how to get the sales revenue at breakeven and the sales revenue at target...
please explain how to get the sales revenue at breakeven and the
sales revenue at target profit (the gray boxes)! :)
131 Center $ . % Xv fx ) Conditional Format Forming as a St Launch Shipping and handling ---- 40.3951 94 11 1 523.4117647 se Wet Business & Directions Original Assumptions Advising client - on Ready Multiproduct Breakeven point: -in units Sales revenue at breakeven Product #1 53.78151261 Product #2 40.33613445 Total 94.11764706 + Product #1 Product #2 Multiproduct...
If any could please help with
question E & F
Answer for Question C is $37,500
For tax purposes, "gross income" is all the money a person receives in a given year from any source. But income taxes are levied or "taxable income" rather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $50,000 last year in wages, earned $10,000 from investments, and were given...
4. (20 points) Suppose that, in the basic one-period model, there is no government spending and no taxes. Production by the representative firm produces pollution in proportion to the amount of output produced. Given any consumption bundle (a consumption-leisure pair), the consumer is worse of the more pollution there is. a. In a diagram, show the competitive equilibrium and the Pareto optimum. Show that the competitive equilibrium is not Pareto optimal, and explain why. Is more or less output produced...
please explain how to get the sales revenue at breakeven and the
sales revenue at target profit (the gray boxes)! :)
131 Center $ . % Xv fx ) Conditional Format Forming as a St Launch Shipping and handling ---- 40.3951 94 11 1 523.4117647 se Wet Business & Directions Original Assumptions Advising client - on Ready Multiproduct Breakeven point: -in units Sales revenue at breakeven Product #1 53.78151261 Product #2 40.33613445 Total 94.11764706 + Product #1 Product #2 Multiproduct...
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