A government tax which has the effect of decreasing the production of some product or service...
A government tax which has the effect of decreasing
the production of some product or service may be justified
economically if:
A. The spillover costs involved in its production are very
substantial
B. The private and spillover costs of production are very
substantial.
C. substantial spillover benefits are involved in its
production.
D. all of the above.
Homework Answers
Answer
Option A
A. The spillover costs involved in its production are very substantial
A spillover cost is a negative externality, and it affects the third party to the tax is justified on the good and the tax revenue is used to cover up the loss of the third party from spillover costs.
A spillover benefits effect is justified if there is a subsidy on the production and increases the production of the good.
Add Answer to:
A government tax which has the effect of decreasing
the production of some product or service...
Hello, I'm asking for some help on these questions. Any help will be much appreciated. Thank...
Hello, I'm asking for some help on these questions. Any help will be much appreciated. Thank you! 1. A monopolist faces ________. A. a horizontal demand curve at the market price B. several close substitutes for its product or service C. a vertical demand curve D. the market demand curve 2. Marginal revenue is less than the price for a monopolist because ________. A. the firm sets the price B. a monopolist must lower its price to sell another unit...
If the government of Ghana decide to cut the basic rate of income tax, which will...
If the government of Ghana decide to cut the basic rate of income tax, which will be the larger effect – the income effect or the substitution effect – for people (a) on low incomes just above the tax threshold and (b) on very high incomes? What will be the effect on hours worked in each case (assuming that the person has a choice)?
f the economy adds to its inventory of goods during some year, A) this amount should be included in calculating tha...
f the economy adds to its inventory of goods during some year, A) this amount should be included in calculating that year's GDP. B) gross investment will exceed net investment by the amount of the inventory increase C) this amount should be subtracted in calculating that year's GDP. D) this amount should be ignored in calculating that year's GDP. (Consider This) From an economist's perspective, when is government too big? A) when the marginal costs from additional government spending exceed...
Which one of the graphs below represents a production function with both increasing and decreasing returns...
Which one of the graphs below represents a production function with
both increasing and decreasing returns to scale?
70. Which one of the graphs below could represent a total product curve with constant returns to scale? a) Graphia b) Graph b Graph c d) Graph d e) Graph e 1. Which one of the graphs below represents a production function with both increasing and decreasing returns to scale? a) Graph a b) Graph b Graph c d) Graph d e)...
An new labor tax is being proposed by the government. Economists disagree about the desirability ...
An new labor tax is being proposed by the government. Economists disagree about the desirability of such an increase. Economist Govcare argues that such an increase is a good idea because it will help the government to maintain vital programs such as Medicare and Medicaid and the tax will generate only a small deadweight loss. Economists Dolittle argues that the new tax may help with Medicare and Medicaid but that the deadweight loss to society will be very large. The...
Product cost for financial statement purposes may include: a-all costs allowed by government agencies b-all costs...
Product cost for financial statement purposes may include: a-all costs allowed by government agencies b-all costs included for pricing and product-mix decisions c-production costs d-all costs except marketing costs
Which of the following would likely be accounted for in an Internal Service Fund? ------------------------------------------------------------------------------------------------------------------------------ a....
Which of the following would likely be accounted for in an Internal Service Fund? ------------------------------------------------------------------------------------------------------------------------------ a. A government's water and sewer department if it provides water and sewer services to government departments as well as to residents and businesses in the community. b. A government's central printing shop. c. The Payroll and Benefits Department of the government. d. All of the above are likely to be accounted for in an Internal Service Fund.
Market failure questions Determining which public goods to provide requires governments to a. Issue licenses Salmon...
Market failure questions Determining which public goods to provide requires governments to a. Issue licenses Salmon are potentially overfished because they are a common resource is rival in consumption a common resource that is underutilized. A public good. d. All of the above а. b. b. Minimize tax burdens с. c. Perform cost-benefit analyses d. Resolve all externalities. Voting rates are low in the U.S compared to other countries because a. It is not mandatory b. Marginal benefits are less...
Multiple Choice Envision a situation in which the federal government decides that corporations don't pay enough...
Multiple Choice
Envision a situation in which the federal government decides that corporations don't pay enough taxes (even though the U.S. corporate tax rate is 38% - the highest in the world). Also, at the same time, elected officials feel that voters will always fall for the class warfare argument that greedy corporations have too much money, so the government should take some money from the successful businesses and give it to the poor. (As W.C. Fields used to say,...
9. Let the MPC in the US is 0.80. With no crowding out effect, if the...
9. Let the MPC in the US is 0.80. With no crowding out effect, if the govt. spending increases by $100 billion, then output/GDP will increase by: a. $20 billion b. $80 billion c. $500 billion d. $1000 billion 10. If the US GDP is less than GNP is year 2017, then which of the following is true? a. Net Factor Payment (NFP) in 2017 was positive for the USA b. Net Factor Payment (NFP) in 2017 was negative for...
f the economy adds to its inventory of goods during some year, A) this amount should be included in calculating that year's GDP. B) gross investment will exceed net investment by the amount of the inventory increase C) this amount should be subtracted in calculating that year's GDP. D) this amount should be ignored in calculating that year's GDP. (Consider This) From an economist's perspective, when is government too big? A) when the marginal costs from additional government spending exceed...
Which one of the graphs below represents a production function with
both increasing and decreasing returns to scale?
70. Which one of the graphs below could represent a total product curve with constant returns to scale? a) Graphia b) Graph b Graph c d) Graph d e) Graph e 1. Which one of the graphs below represents a production function with both increasing and decreasing returns to scale? a) Graph a b) Graph b Graph c d) Graph d e)...
Market failure questions Determining which public goods to provide requires governments to a. Issue licenses Salmon are potentially overfished because they are a common resource is rival in consumption a common resource that is underutilized. A public good. d. All of the above а. b. b. Minimize tax burdens с. c. Perform cost-benefit analyses d. Resolve all externalities. Voting rates are low in the U.S compared to other countries because a. It is not mandatory b. Marginal benefits are less...
Multiple Choice
Envision a situation in which the federal government decides that corporations don't pay enough taxes (even though the U.S. corporate tax rate is 38% - the highest in the world). Also, at the same time, elected officials feel that voters will always fall for the class warfare argument that greedy corporations have too much money, so the government should take some money from the successful businesses and give it to the poor. (As W.C. Fields used to say,...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago