Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 12, Problem 4QR
To determine
Reason for taxing consumption rather than taxing income.
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Principles of Microeconomics (MindTap Course List)
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- Suppose the California legislature passed a sweeping law to DECREASING the parking requirements and setback requirements. Suppose there is a housing tax. What is the effect of this law on the PES for housing? What effect would this law have on the tax burden for buyers?arrow_forwardSuppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as decreasing the parking requirements and setback requirements. Suppose there is a housing tax. What is the effect of this law on the PES for housing? What effect would this law have on the tax burden for buyers?arrow_forwardDo you think that dead weight loss of soda junk food tax would be relatively large or relatively small? Why? Do you think taxing junk food would be a good idea? Based on your analysis would it really help reduce the number of obese people in the United states?arrow_forward
- Generally speaking, how do taxes affect markets? What affect does legal incidence have on economic incidence? What effect does elasticity have on the economic incidence of taxes?arrow_forwardWhat if any are the effects of taxation on a normal profit?arrow_forwardDefine the term Social Discount Rate?arrow_forward
- Based on empirical evidence, how important is tax compliance for society?arrow_forwardWhat is the market failure that justifies goverment involvement in the economy?arrow_forwardWhy do some economists advocate taxing consumption rather than income? Give two arguments why wealthy taxpayers should pay more taxes than poor taxers? Pakistan has trade imbalance where our imports are far more than our exports, based on comparative advantage theory suggest ways and means by which we can improve international trade? Unemployment is a global issue, what steps government had to take to curb it. Suggest by which we can improve employment.arrow_forward
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