Exploring Macroeconomics
Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
Question
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Chapter 7, Problem 7P
To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the motor homes is the good market to tax or not if the motive is to raise the tax revenue.

(d)

To determine

Whether the cigarettes is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(e)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(f)

To determine

Whether the pizza is the good market to tax or not if the motive is to raise the tax revenue.

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Why does the government ass excise taxes to certain products?
Draw a supply-and-demand diagram with a tax onthe sale of a good. Show the deadweight loss. Showthe tax revenue
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