/hich of the following is not a legitimate area of intervention by government in a mixed economy? O A. regulation of the pricing behaviour of monopoly industries O B. Regulation of price increases that result from changes in patterns of demand and supply in competitiv stabilisation of the economy during periods of cyclical instability O D. Redistribution of purchasing power via progressive taxation and transfers
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- 4 Considera one good, two-period closed economy without government. The representative agent is endowed with ?1 in the first period and ?2 in the second period. (Q) Derive the optimal consumption and investment plans for the representative consumer and representative firm respectively.Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by 200 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policys total costs and benefits? Do you think it will pass?There were lots of similarities between Britain's system of government and that of the individual British colonies in North America. One difference, though, was that a far larger proportion of male residents experienced direct representation in theirlegislatures, rather than the "virtual representation" that most Britons experienced inEngland and Scotland. Why? 1.Because elections for office in the colonial legislatures were done by secretballot. 2.Because ownership of enough property to meet the property requirements forvoting was more common in the colonies than it was in Britain. 3.Because the colonists thought slavery, in both the political sense and actualslavery, was more wrong than did their British counterparts. 4.Because only enslaved people were prevented from having voting rights in the colonies.
- Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” In consumer theory economics, what is the difference between a necessity and a luxury good. What is the likely difference in the tax revenue obtained from a tax imposed on a necessity versus a luxury good? Explain and illustrate with appropriate figures. Question Requirements: Identify the difference between a necessity and luxury and provide an example. Highlight ability to identify the link of this definition to tax revenue. Highlight ability to encapsulate this concept precisely using correctly drawn figure.Corporations exist as legal entities with certain advantages (such as limited liability)because society allows them to do so, and these corporate rights and advantages can beremoved from firms that are perceived to be irresponsible. Companies that think abouttheir social responsibility in this light are engaging in CSR for what type of reasons? O. StrategicO. RegulatoryO. EthicalO. PragmaticConsider the following consumer problem's facing a proportional once tax. Utility function over consumption (C) and leisure (L) U(C,L)= 3 ln(C)+ 2 ln(L) Total hours : H=40 Labor hours :NS =H-L Proportional income tax rate = 0.2 Production function: Y =zND Total factor productivity : z =4 The representative consumer maximizes utility, the representative firm maximizes profit, and the government balances budget . What is the tax revenue at equilibrium.?
- Conversely, show geometrically the effect of a decrease in Price (i.e., BELOW the equilibrium price). What “economic problem” is created now in the market. Measure geometrically he magnitude or distance of such “economic problem”. Again, in the face of such an economic problem, where private sector buyers and suppliers could not do anything more, which economic actor should come to intervene properly? Discuss what should that intervener do amidst such economic problem faced by the microeconomic actor – NOTABLY THE PRODUCER OR SELLER. As an Economist (or beyond the limits of Economic studies), what would you recommend to the VEGETABLE PRODUCERS and to the GOVERNMENT as well? Discuss exhaustively.(a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay? Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? Please do not use chat gpt and answer the best way it can be.1. Though the tax structure (i.e., the tax base and rates) has much to do with the equity effects of taxation, its administration could also strengthen or weaken its fairness. If the tax administrator practices discretion in the grant of deductions, there is a. Regressive equity b. Progressive equity c. Vertical equity d. Horizontal equity 2. The potential of the income tax as a tool to enhance the equity of the tax system brings to the fore the importance of designing the scheme of income taxation in accordance with acceptable norms and principles such as allocating costs or burdens to the people. This is known as the: a. Non-compensation or set-off b. The Lifeblood Doctrine c. Marshall doctrine d. Ability to pay approach3. An egalitarian society normally is prejudiced towards a tax system which puts a heavier burden on those who have the greater ability to pay. An equitable tax is taken as one which promotes the unequal tax treatment of unequals. The tax must be so…
- Marijuana sales, primarily for medical use but also recreational sales (in some states,) have become big business and an economic boon to many states. Yet at the federal level, marijuana is still a Schedule 1 drug and illegal under the Controlled Substances Act (21U.S.C. Sec. 811). How is it possible, then, for states to cultivate and sell marijuana without federal intervention? What is the role of each of the three branches of government with regard to policing and regulating marijuana use? What has caused the national “sea change” with regard to legalizing its use?A market has a demand function given by the equation Qd = 180 - 2P, and a supply functiongivebn by the equation Qs = -15 + P. The market is government regulated with a price support per unit and production quotas. If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? Considering the price support and the quota, calculate i) the consumer surplus ii) the producer surplus iii) deadweight lossQd = 180 - 2P, Qs = ‐ 15 + P The market is government-regulated with a price support per unit and production quotas. If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? a.an increase in the demand for the good. new demand equation is Qd = 190 - 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, or Maintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust, what is: The price observed in the market? The consumer surplus? The producer surplus? The deadweight loss? b. Suppose the government decides to increase the number of quotas available to 72 units but it keeps the price support at the current level of $72, what is: The consumer surplus? The producer surplus? The deadweight loss? c. Which of the government options in 1a. will be preferred by: The Producers?…
