Once a government makes "sin taxes" a significant part of its revenue stream, it has an incentive to keep people smoking and drinking. If everyone quits smoking, the government does not get any cigarette tax revenue. Is it really a good idea to fund public services on the back of citizens' addictions? Give at least three reasons and discuss each clearly.

Q: Spending on a public good such as national defense does greatly does slightly does not night or…

A: Public goods are non-rival and non-excludable in nature.  Non-excludable: It implies that it is…

Q: Why might redistribution across communities make sense for the provision of education? a-there are…

A: The correct option is c ‘there is externality associated with education’.

Q: Sarah Marshall pays her state taxes each year and lives in a mansion in Westlake. The taxes are used…

A: Here, it is given that state taxes paid by Sarah Marshall are used to contribute as the funds for…

Q: Please elaborate on the economic role of the government under the two different economic theories of…

A: Laissez faire is a theory where there is no government intervention.Market functions on its own and…

Q: Which of the following statements about corrective taxes is generally NOT true?

A: The correct option is D.

Q: Economists have stated that an economy has plunged to a market failure with an uptick in natural gas…

A: Market failure: Market failure is defined under neoclassical economics as a circumstance in which a…

Q: When people decide to buy cars, they have to decide between fuel economy and other features. It is…

A: Public goods refer to the goods which are available for all the individuals in equal quantities…

Q: A government decides that product X is a demerit good and product Y is a public good. Which policy…

A: "Correct answer is option d."

Q: How does the problem of limited and bundled choice in the public sector relate to economic…

A: Limited and bundled choice in the public sector leads to a reduction in economic efficiency. The…

Q: The Lindahl equilibrium involves producing how many units of the public good? At what tax share?

A: Public goods are those goods that are nonrival and nonexcludable. Nonrival means one cannot consume…

Q: Governments sometimes provide social programs universally to everyone, and sometimes government…

A: Social Security refers to the provision of a payment that the government makes to the public in…

Q: Assuming the government pays higher cost of production by paying wages that are higher than the…

A: As the government pays higher cost of production by paying wages higher than the market wage rate or…

Q: We have heard of "Rock the Vote" or even "Vote or Die." What these ad campaigns are attempting to do…

A: Answer- The ad campaigns are to do is reduce the amount of voter apathy. Economists call this…

Q: Entry fees at national parks and monuments are an example of:         the ability-to-pay principle…

A: There are certain theories and principles which explains the public expenditure and provision of…

Q: Which of the following statements about corrective taxes is generally not true? a) Economists…

A: When a commercial activity produces negative externalities, a corrective tax is imposed. The tax is…

Q: Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life”…

A: Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they is: “nowhere necessaries of life”…

Q: What are the two reasons why the government sometimes failed in their programs

A: The Government fails in many times in their programs due to the following reasons Imperfect…

Q: Economists James Buchanan and Gordon Tullock are well-known for developing Group of answer choices…

A: Both the economist developed public choice model in which choices of public were analyzed.

Q: Would a tax on prescriptions drugs be more likely to be progressive or regressive? Why?

A: The Progressive tax is the theory in tax economics which advocates the proportional tax along with…

Q: One of the problems of allowing goods and services to be distributed solely by the market is that…

A: The following problem has been solved as follows:

Q: Define vertical and horizontal equity objectives of a tax system. Which one do you think is more…

A: What Is Vertical Equity?  Vertical equity is a strategy for gathering annual tax where the taxes…

Q: Which type of grant is usually better at increasing the quantity spent on public goods?…

A: A grant is a amount of money that is providing financial assistance or support by the government or…

Q: The efficiency loss of a tax is the idea that:        in addition to taking income from the…

A: Taxation results in an increase in the price that consumers have to pay above the equilibrium…

Q: Refusing to pay taxes because you disapprove of how the money is being used by the government is an…

A: Taxes are described as a legal payment made by citizens of a country to the government that is…

Q: Give at least 2 examples of how some of the principles of tax design can conflict with each other.…

A: Answer: The equity principle of taxation can be explained into two parts, first is vertical equity…

Q: Suppose the govt provides a public education through public schools worth $10,000 to each child. How…

A: The crowding out is an economic concept that shows how rise in public expenditure chokes private…

Q: Government spending on programs such as Social Security and Medicare are included under:

A: Social security and Medicare are part of Federal budget.

Q: government spending

A: Government spending- government purchases the goods & services to use them efficiently for the…

Q: Explain why it might be socially and economically optimal for a government to have a public policy…

A: Subsidy for education would benefit society socially as well as economically. There would positive…

Q: What challenges and opportunities would arise from higher and lower degrees of government…

A: Government intervention in the market refers to the regulation of the market by the government…

Q: Multiple choice question Which of the following is TRUE of median voter outcomes? a. They are…

A: Which of the following is TRUE of median voter outcomes? a. They are socially efficient. b. They are…

Q: The state has decided to increase funding for public education. They are considering four…

A: Change of behavior of individuals due to increase in different taxes: 1.Sales tax on food Because…

Q: When assessing the optimal size of the public sector, the benefits of government action   Multiple…

A: Public goods are those goods which are non-rivalrous and non-excludable. It means that no individual…

Q: What are some of the problems associated with working out whether a tax system is equitable?

A: Meaning of Progressive Tax: The term progressive tax refers to the situation under which the tax…

Q: Outline the budgetary process and explain the role that politics plays.

A: The budget is defined as the estimation of expenses and revenue over a specified future period of…