explain each of the following in the context of the right a government to impose taxes, levies and duties: 1. company taxation 2. wealth tax
explain each of the following in the context of the right a government to impose taxes,...
From a revenue-maximizing viewpoint, explain why the government would be more likely to impose excise taxes on cigarettes and beer rather than on mangoes and mineral water?
Suppose that the government of China decided to impose a per unit tax on the suppliers of salt. (a) Using a supply and demand model, show and explain the impact that the per unit tax had on the equilibrium price and quantity of salt. (4 marks) (b) Using the diagram created for your answer to (a), show and explain what effect the per unit tax had on consumer surplus, producer surplus and deadweight loss. (6 marks) (c) List three...
Distinguish between an estate tax and an inheritance tax. Do some states impose both? Neither? Which, if either, does the Federal government impose? 18. a. b. 19. LO.4 Jake (age 72) and Jessica (age 28) were recently married. To avoid any transfer taxes, Jake has promised to leave Jessica all of his wealth when he dies. Is Jake under some misconception about the operation of the Federal gift and estate taxes? Explain. 20. LO.4 Address the following issues: What is...
When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold. Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model of supply and demand, describe what would happen to the price and quantity of tires sold. Would the amount of tax paid by the consumer...
please help and explain! 1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply A 15.00 B 11.00 1 PRICE (Dallars per pinckney) D E 7.00 F 1 QUANTITY (Pinckneys) Complete the following table, given the...
5. TAXES/SUBSIDIES, AND OTHER GOVERNMENT REGULATIONS 1. Consider the demand and supply for bubbly water in a market represented by the following equations: QD = 15 - 10P QS = 40P - 50 where Q is millions of bottles per year and P measures dollars per bottle. The equilibrium price of bubbly water is $1.30 per bottle and 2 million bottles are sold each year. (a) Calculate the price elasticity of demand and the price elasticity of supply at the...
the(sellerg of certain 1. The Korean government is considering imposing taxes on classes of products. The first tax they are considering is a tax on rice. The second is a tax on all grains including rice, barley, wheat and corn. The third is a tax on all food products. Assume that the price elasticity of supply is the same for all food products but the price elasticity of demand varies. Please answer to the following questions by drawing the demand...
two countries A and B can each be described by a keynesian-cross model with lump-sum taxes. the MPC is .9 in A and B. A decides to increase gobernment spending by 2 billion while B decides to cut tax by 2 billion a. calculate government purchase multiplier for A b. tax multiplier for B assume lump sum taxation
What is your understanding of various revenue sources at each level of government ? Describe how the concept of tax equity applies to income, payroll, and wealth-based taxes vs. transaction-based taxes.
1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.