Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 3DQ
To determine
Relation between Henry George’s proposal for a single tax on land and supply elasticity of land.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, all
citizens must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn.
Given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be
rate for his entire income will be
and his average tax
O 10 percent; 50 percent
O 50 percent; less than 50 percent
O 10 percent; less than 50 percent
O 50 percent; 50 percent
If the tax code exempts the first $20,000 of income from taxation and then taxes 25 percent of all income above that level, then a person who earns percent and a marginal tax rate of $50,000 has an average tax rate of percent.
O 15, 25 O 25, 15 O 25, 30 O 30, 25
Consider that the market demand for a textbook is given by P = 100 - 20 land the market supply is given by P = 10 + Q. Suppose a price
ceiling of $20 is imposed. What is the deadweight loss?
O 300
O 450
O 600
O 150
Chapter 18 Solutions
Economics (Irwin Economics)
Knowledge Booster
Similar questions
- 5. LO 4 Suppose, as in the federal income tax code for the United States, that the representative con- sumer faces a wage income tax with a standard deduction. That is, the representative consumer pays no tax on wage income for the first x units of real wage income, and then pays a proportional taxt on each unit of real wage income greater than x Therefore, the consumer's budget constraint given by C wh -D + if wh- D=x., or C (1-wh-D+ tx+ if_wCh = D2 Now, suppose that the government reduces tax deduction x Using diagrams, determine the effects of this tax change on the consumer, and explain your results in terms of income and sub stitution effects. Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reducedarrow_forward4 l 51% a 12:02 O Worksheet (25%) Suppose that the governrnent irmposes a tax oni cigarettes. Use the diagram below to answer the questions D is the demand curve before tax S is the supply curve before tax and S is the supply curve after the tax. Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax indicate: () Price paid by consumers (1i) Price paid by producers () Quantity of cigarettes sold (iv) Buyer's reservation pricearrow_forwardQuestion 29 500 $3.76 $3.40 $3.30 $3 00 10 12 14 16 18 20 Suppose that a tax of $0.45 is imposed on this market, what will be the new price suppliers receive? O a. 3.75 O b.3.00 OC. 3.30 O d.3.40arrow_forward
- > D Question 4 Price (dollars per widget) a O 8 4 N 10 $6. S O between $8 and $6. more than or equal to $8. less than $6. 1 pts 20 30 40 50 60 Quantity (millions of widgets per year) In the figure above, if a tax of $2 per widget is imposed on sellers, then the after-tax amount per widget received by the seller will bearrow_forwardFigure #2 price 10 D after as 10 20 40 50 70 Refer to Figure#2. Respectively, what are the tax burdens paid by consumers and sellers? O $1.00 per unit and $2.00 per unit O $3.00 per unit and $1.00 per unit O $1.00 per unit and $3.00 per unit- $3.00 per unit and $2.00 per unit O Tyne here to searcharrow_forwardO O 198765432 O 10 Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of 40 units in the graph above. If the government decides to add a $2 per-unit tax on this good, the deadweight loss from the tax will be: 10 80 70 S1 O 60 SO Demand 0 10 20 30 40 50 60 70 80 90100arrow_forward
- Suppose that the demand and supply functions for a good are given as follows: Demand: O600-SP Supply: O= 300+4P Suppose now that government imposes $2 tax perunit of output on sellers. What is the burden on buyers 12 27 15arrow_forwardSuppose that the demand and supply functions for a good are given as follows: Demand: 0 = 600-5P Supply: 0 Suppose now that government imposes $27 tax per unit of output on sellers. What is the burden on sellers? =-300+4P O 27 12 15arrow_forward20 18 S 16 14 12 10 8 D 4 2 0 + 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity Suppose that supply and demand at a market are represented by curves S and D at the figure above (notice that the vertical axis grid has increments of $2) and then a tax of $6 dollars per unit is imposed on buyers. What is the tax burden on the sellers? $8 $6 $4 $2 Pricearrow_forward
- A lump sum tax can never have horizontal equity. O a. True O b. Falsearrow_forwardRefer to Figure 8-2. The per-unit burden of the tax on sellers is a. $3. b. $5. c. $2. d. $4. The vertical distance between points A and B represents a tax in the market. PRICE 12 11 10 9 8 07 (O 5 4 Figure 8-2 3 2 1 A B Supply Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITYarrow_forwardKathy works full time during the day as an economist and faces a 90 percent marginal tax rate. If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes? O $1,000 O $4,000 O $6,000 O $10,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning