Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 28, Problem 5CQ
To determine
Property right on income and its impacts.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Provide an example of a failure of market in terms of equity/income distribution that is not life-saving medicine. Is the government doing anything to account for this failure of market? In your opinion, should they do more, less or keep doing what they are doing? Explain.
What does the research and experimentation tax credit do?
It offers a tax benefit to individuals who work in research and development.
It offers firms a tax reduction depending on how much research and development they do.
Generates significant tax revenue for the federal government.
It offers firms a tax reduction depending on hiring of scientific and technical personnel.
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are:
“nowhere necessaries of life”
“objects of almost universal consumption”
Why do you think Adam Smith preferred to impose a tax on luxury goods? Why do you think Adam Smith preferred a tax on ‘objects of almost universal consumption’? Note that ‘Smith’s proposal to tax sugar was not aimed at improving health’
Requirement:
Demonstrate a precise understanding of Adam Smith’s meaning and intent, with the appropriate link to relevant economic concepts.
Chapter 28 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Explain why using the local property tax to finance a given quantity and quality of public schooling can result in low tax rates in rich jurisdictions but high tax rates in poor jurisdictions. How do state governments supplement local finance of education to insure equality of opportunity of education?arrow_forwardHow does the government make an equitable/impartial/fair distribution of income? Give an example and explain why.arrow_forwardExplain in your own words how you believe the Jamaican Government could use taxation to create equity between the rich and the poor in our economy. Your explanation should include practical examples of how this could be achieved. Include referencesarrow_forward
- What does the research and experimentation tax credit do? Group of answer choices A)Generates significant tax revenue for the federal government. B)It offers a tax benefit to individuals who work in research and development. C)It offers firms a tax reduction depending on hiring of scientific and technical personnel. D)It offers firms a tax reduction depending on how much research and development they do.arrow_forwardDefine vertical and horizontal equity objectives of a tax system. Which one do you think is more important in establishing equity and/or fairness?arrow_forward‘Equity can always be increased by raising marginal income tax rates.’ Discuss.arrow_forward
- The concept that people should pay taxes based on the benefits they receive from government services is called Group of answer choices the ability-to-pay principle. the benefits principle. horizontal equity. vertical equity.arrow_forwardEconomists use the word equity to describe a situation in which Select one: a. the benefits of society's resources are distributed fairly among society's members. b. each member of society has the same income. c. society is getting the maximum benefits from its scarce resources. d. each member of society has access to abundant quantities of goods and services, regardless of his or her income.arrow_forward1. As a Filipino citizen and one of the many affected by the pandemic, do you think you are entitled of a share from the taxes collected by our government? Explain in 5 sentences. 2. What is your opinion about those who have not paid taxes or the free riders as they called, are they entitled to a share in the community? Explain in 5 sentences.arrow_forward
- Economists use the word equity to describe a situation in which Select one: a.each member of society has the same income. b.each member of society has access to abundant quantities of goods and services, regardless of his or her income. c.the benefits of society's resources are distributed fairly among society's members. d.society is getting the maximum benefits from its scarce resources.arrow_forwardA tax system based on the ability-to-pay principle claims that all citizens should A. pay taxes based on the benefits they receive from government services. B. pay taxes based on consumption rather than income. C. pay taxes based on saving rather than income. D. pay the same amount in taxes. E. make an equal sacrifice.arrow_forwardEquity is A. the fair distribution of economic benefits. B. always achieved by the market. C. when poorer people's income is growing more rapidly than more wealthy people's income. D. an exactly equal distribution of income.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning