Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 7PA
Sub part (a):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
Sub part (b):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
Sub part (c):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
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Chapter 12 Solutions
Principles of Microeconomics (MindTap Course List)
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- If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should Select one: a. discourage the production of computer chips with taxes. b. discourage the production of potato chips with taxes. c. encourage the production of potato chips with subsidies. d. encourage the production of computer Ichips with subsidies.arrow_forwardWhich of the following is an example of an exemption? A. people paying less on their taxes because they take care of childrenB. profits earned after costs are subtracted from total earningsC. amount of money used to pay for maintaining national parksD. money paid by corporationsarrow_forwardGovernments may not have the incentive to correct a market failure because Kerajaan mungkin tidak berinsentif untuk membetulkan kegagalan pasaran kerana. a. the benefits are greater than costs of correcting the market failure faedahnya lebih besar daripada kos membetulkan kegagalan pasaran b. governments may miscalculate the tax rate to be applied kerajaan mungkin tersilap dalam pengiraan kadar cukai yang akan dikenakan c. governments rarely have the information required to correct the market failure kerajaan jarang mempunyai maklumat yang diperlukan untuk membetulkan kegagalan pasaran d. governments normally involve political decisions, which are reflected by individual interest to gain more for themselvesarrow_forward
- Consider the following two taxes: 1) a state imposes a 10 cent tax on every gallon of gasoline sold in the state to pay for road maintenance and improvements, and 2) a state imposes an additional 1% income tax on all state residents to pay for the construction of 50 new soccer fields throughout the state. Which of these two taxes is more consistent with the benefits-received principle? Why?arrow_forwardThe south African government develops targets that pertain to healthcare and education. Which of the following statements explains why government provides these two goods? A. The benefit to society of healthcare and education is extremely low. B. The benefits that society receives from health care and education exceed those that accrue to an individual user. C . The government spends money on health care and education because they are public goods D. Health care and education only produce negative externalities.arrow_forwardRefusing to pay taxes because you disapprove of how the money is being used by the government is an example of whatarrow_forward
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