Imposition of new taxes levied on goods and services will tend to remain constant remains the same push demand curve to the right O push demand curve to the left
Q: stock of government debt Will Con ue to rise a. Increases its taxes. O b. Runs a budget surplus. Oc.…
A: When current expenses exceed/surpasses the amount of revenue collected via normal operations, a…
Q: Miller wants to discourage energy drink purchase, so he's considering a $1 tax or $2 tax on the…
A: The Laffer curve, given by Arthur Laffer, is a supply-side economics' paradigm that illustrates the…
Q: Explain marginal tax rate.
A: 1-The marginal tax rate is the additional/extra tax rate paid for every additional/extra income…
Q: Which of the following are consistent with Contractionary Fiscal Policy O Lower Government Spending…
A: find below the answer.
Q: ose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she…
A: Tax is referred to financial charge that is compulsory for every individual. Taxation is a term used…
Q: Which curve shifts and in which direction when the following events occur in the tax accounting…
A: a) Answer:- Demand increases. Explanation:- On tax day, ever more individual are going to look to…
Q: In an economy such that: C = 200 + 0.80 (Y- T) I=40 - 20 R X 30 - 0.05 Y T= 100 M =0.20 Y- 10 R M =…
A: The goods market equilibrium is indicated at a point where real GDP is equal to aggregate…
Q: The formula for the tax multiplier is Select one: O a. -MPC/(MPC + 1). O b. MPC/ (1 MPC). O c. 1/(1-…
A: Tax multiplier assumes that a change in tax would affect the consumption, keeping everything else…
Q: The FICA tax is levied on employers, employees, and certain self-employed individuals. Revenue goes…
A: As given in the question, the contribution to the retirement part tax was 6.2 percent of first…
Q: The initial equilibrium is e, where the linear supply curve intersects the linear demand curve. Show…
A: The incidence of tax on producer and consumer depends on the price elasticity of demand and supply.
Q: Solve the attachment
A: The incidence of tax or tax burden refers to when the tax payment is shared by both a seller and a…
Q: Refer to Figure 1. 1 the initial effect of an increase in taxes is illustrated as a movement from *…
A: When aggregate demand falls, aggregate demand curve shifts leftwards. When aggregate demand rises,…
Q: If sellers bear more of the burden of taxation then O supply is more elastic than demand O…
A: Tax incidence refers to the distribution of tax burden between buyers and sellers. The burden of the…
Q: Generational Imbalance is the division of between the current and future generations, assuming that…
A: When talking about generational imbalances, it is the economic concept to describe a situation when…
Q: answer). Now suppose a specific tax, t > 0, is imposed on this market that has to be paid to the…
A: Qd= 8B+2-4BPQs=P In the given equation Qd is the demand and Qs is the supply. Taking into…
Q: Net taxes are taxes paid minus O A. subsidies O B. consumption expenditure of households O C.…
A: Taxes are the duties imposed by the government and subsidies are some kind of monetary assistance or…
Q: Tax expenditures are: O a. expenditures made to collect taxes. b. losses in revenue due to tax…
A: Inflation has a profound affect on the economy, it reduces purchasing power of the consumer, affects…
Q: Which of the following would be classed as an expansionary fiscal policy? O A. An increase in the…
A: Fiscal policy is the one used by the government. The instruments used by the government in a fiscal…
Q: Refer to the Figure 5.7. An excise tax introduces a wedge between the price paid by consumers (Pc)…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Mhe marginal propensity to consume is 0.8, the marginal tax rate is 0.2, and the marginal propensity…
A: In the Keynesian macroeconomics model, the equilibrium level of output in the goods market is…
Q: 2. Assume that the unit tax is $6.00 and the pre-tax equilibrium quantity and equilibrium price is…
A: Note – As per Bartleby’s answering policy as there are multiple parts answer to only first three…
Q: Critically evaluate the impending rise of sales tax planned by the Japanese government and its…
A: The authorized (GDP) gross domestic product sculpture though was more diminutive than the 7.1% drop…
Q: 1. Draw how the burden of the tax is distributed under the following scenarios: a) Inelastic demand…
A: a) Inelastic demand and elastic supply:In this case, the initial equilibrium is at e at price P and…
Q: Identify whether each of the following taxes is progressive or regressive. a. Personal income tax:…
A: Progressive tax is one that is higher with the increase in income, while regressive tax falls with…
Q: Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 +…
A: Equilibrium occurs at the point where the demand and supply is equal. For including the tax, it is…
Q: mposition of new taxes levied on goods and services will tend to a. remain constant b. remains the…
A: A tax is a distortion in the market. It disturbs the equilibrium and affects the market quantity…
Q: A $3 tax on fruits and vegetables would be more effective at increasing tax revenue if the supply of…
A: Taxes are compulsory contributions imposed on individuals or corporations by a government entity,…
Q: Identify whether each of the following taxes is progressive or regressive and indicate in each case…
A: 1. The Federal Personal Income tax is” progressive, and the incident is on the taxpayer” As income…
Q: Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O.…
A: When a government imposed a tax on a product, then how much the burden of the tax falls on buyers…
Q: described by the equation Q = 70 - 2P, and the supply curve is described by the equation Q = 10 + P.…
A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.
Q: Who gets most of the burden of the tax when demand condition is D1 and what is the tax burden? *…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Which of the following statement is true about tax? A. The burden shared by consumers and producers…
A: Answer: Correct option: option (D) Explanation: When a tax is levied either on the buyer or seller,…
Q: d. Given C and I above, if government increases both G and T by 30, calculate equilibrium Y. e.…
A: We use the following formula, Income = Aggregate expenditure Y = C + I + G
Q: 17 of 25 If the federal government increases govemment spending to increase aggregate demand and…
A: Sometimes higher government spending lowers consumption spending and investment spending.
Q: Which of the following is the most correct statemeht ab burdens? A tax burden is distributed…
A: The correct answer here would have been :- A tax burden falls most heavily on the side of the market…
Q: A tax in a supply and demand model will: O Transfer surplus from the government to consumers. O…
A:
Q: Tax incidence refers to ? A. the average tax rate. B.how much revenue a tax generates. C.the extent…
A: The tax incidence means the division of tax burden between buyers and sellers. It refers to the…
Q: Question: Solve for the equilibrium level of output in the following two scenarios: there isan…
A: Y=−5+0.5(Y−250−0.1Y)+200+300+50'
Q: If the federal government has a budget surplus, then it is definitely the case that revenues are…
A: Government collects taxes in order to maintain public expenditure.
Q: If government spending is greater than tax revenue, which of the following must be true? Select ALL…
A: Tax revenue is the earning of the government through taxes.
Q: Tax incidence is O A. the potential division of the burden of a tax between buyers and government in…
A: In a market, when government imposes tax on any of the market participants, this tax will have two…
Q: Income Tax rates will be changed to the following Marginal Tax Rates given by: T(I) = 40*I2/ I2+1000…
A: Marginal tax rate refers to the tax rate that imposed on the last dollar of income.
Q: Please refer to the description of a tax on a market, represented by the graphic What is the price…
A: Market equilibrium is that condition where market Demand is equal to market supply. After imposing…
Q: Question 11 simultaneous 50 billion dollar increase in both government and taxation would have O no…
A: The rise in government expenditure has multiplier effects on GDP. The Rise in the expenditure causes…
Q: The budget deficit is calculated as government spending minus tax revenues. O A. False O B. True
A: As you have asked about 2nd question so I am answering that only. Budget: It is the plan of spending…
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- A consumer has income of $3,000. Wine costs $3per glass, and cheese costs $6 per pound. Drawthe consumer’s budget constraint with wine onthe vertical axis. What is the slope of this budgetconstraint?. Suppose that initially, bread is $2 per loaf,and cake is $2 per slice. Marie Antoinettehas $18 to spend on these items each week.At this income and those prices, Marie consumes 5 loaves of bread and 4 slices of cake.Then, the price of bread DECREASES to$1 per loaf. (The price of cake is still $2.)IF Marie’s budget had also fallen to $13so that she could still just afford her original bundle, she WOULD choose to spendthose $13 on 7 loaves of bread and 3 slicesof cake.But since Marie still has her original $18budget, she actually chooses to buy 4loaves of bread and 7 slices of cake afterthe price change.When the price of bread fell from $2 to $1,what was the substitution effect on Marie’sdemand for bread?Mika earns $395 per week which she spends entirely at the grocery store, purchasing either food or alcohol. The price of food is $1/unit, while the price of alcohol is $5/unit. If Mika receives an additional $71/week in food stamps that can only be used to buy food at the grocery store (so, this money could be used to buy food but NOT alcohol), what is the slope of Mika's budget constraint at the point where the constraint intersects the vertical axis, were she to graph quantity of food on the horizontal axis and quantity of alcohol on the vertical axis? (Note: The numbers may change between questions, so read carefully).
- Total utility is maximized in the consumption oftwo goods by equating thea. prices of both goods for the last dollar spenton each good.b. marginal utilities of both goods for the lastdollar spent on each good.c. ratios of marginal utility to the price of bothgoods for the last dollar spent on each good.d. marginal utility of one good to the price ofthe other good.George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes. Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope. Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve. Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods. The graphs below shows the behaviour of consumption of durables and…George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes. Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope. Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve. Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods. The graphs below shows the behaviour of consumption of durables and…
- Fill in the marginal utility schedule for each of the goods. Assume that the price of food is $20, clothing $10, and housing $30. What is marginal utility per $ derived from consumption of the first unit of each of t1 three commodities? If Smith had only $20 to spend, which good(s) would he Assume that Smith's income is $130/week. If he purchased only the three commodities and faced the price structure in part b, how many units of each . would he demand per week?A student has a monthly budget of $120 to spend on eitherburritos, which cost $6 each, or sodas, which cost $4 each.1. What is the largest number of burritos that the studentcould afford to purchase in one month?2. What is the largest number of sodas the student couldafford to purchase in one month?3. Draw the student's budget constraint. Put burritos on thex-axis and sodas on the y-axis.Graded Assignment due Monday4. Which combinations of burritos and sodas are unaffordable--those tothe left of the line in the graph or those above the line in the graph? Why?5. Which combinations would leave some budget unspent - those to theleft of the line in the above graph or those to the right of the line in theabove graph?6. What is the equation for the student's budget constraint? In yourequation, use Q1 as the variable to represent the quantity of burritos andQ2 to represent the quantity of sodas.7. What is the opportunity cost of a burrito?8. What is the opportunity cost of a soda?9. The local…Suppose that a consumer's marginal rate of substitution at her current chosen bundle is MUx/MUy=3 but she can exchange X and Y at Px/Py=5. Should she keep her current bundle, or can she make herself better off by trading at these prices? Which good will she buy, and which will she sell?
- John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Supposethat John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?Katie’s preferences for consumption and leisure can be expressed as U(C, L) = (C – 80) x (L – 40) This utility function implies that Katie’s marginal utility of leisure is C – 80 and her marginal utility of consumption is L – 40. There are 110 hours in the week available to split between work and leisure. Katie earns $15 per hour after taxes. She also receives $200 worth of assistance benefits each week regardless of how much she works. Graph Katie’s budget line. What is Katie’s marginal rate of substitution when L = 70 and she is on her budget line? What is Katie’s reservation wage? Find Katie’s optimal amount of consumption and leisure.The marginal utilities derived from the consumption of goods X and Y by a given consumer are given by MUx=40-6x and MUy=80-10y. If the prices of X and Y are Gh2 and Gh10 respectfully. determine the number of units of the commodities that the consumer must consume to optimize satisfaction granted that he/she earns an income of GH40 within the period.
