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 ST7, Problem 7CQ
(a)
To determine
The price of auto repair cost and maintenance service.
(b)
To determine
Total spending of auto repair cost and maintenance service.
(c)
To determine
Evaluation of the program.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The state has decided to increase funding for public education. They are considering four alternative taxes to finance these expenditures. All four taxes would raise the same amount of revenue.1.sales tax on food.2.tax on families with school-age children.3.property tax on vacation homes.4.sales tax on jewelry.(1) Taxes change incentives. How might individuals change their behavior becauseof each of these taxes?
The Federal Debt Reduction Commission recommended that both mortgage-related subsidies and tax breaks from the federal agencies that help middle- and lower-income families buy homes be scaled back or eliminated. The Obama administration has proposed taking the latter step, eliminating Fannie Mae and Freddie Mac but doing nothing about the incentives and tax breaks that benefit wealthier taxpayers. Is their proposal ethical? Why or why not?
If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of private housing? (Assume a defense budget of $600 billion.)
Chapter ST7 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- In this module we learned that, despite increases in the cost, the value of higher education has increased over time. How can college be made more affordable? Revenues earned by colleges and universities come from three main sources: Tuition and fees paid by students, which have increased faster than the cost of living. Support from governments at the federal, state and local levels. This support is paid for through tax revenues. Even private colleges and universities obtain funding from the government, but government support has declined at all levels in recent years. Alumni contributions. What has caused the cost of college to increase so much? (Not every college has a fancy gym or an Olympic sized pool with a lazy river.)arrow_forwardDescribe some government intervention in the economy with the intent of controlling prices. Identify the parties who benefit and those who are or will be hurt by this intervention. What unintended consequences will likely or have occurred as a result of this intervention.arrow_forwardI need help with these 3 problems. Thank you in advance! Suppose that in 2015, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of $100 per book and enrolled in 25 credit hours of coursework at a price of $360 per credit hour. In 2016, the typical student continued to purchase 10 textbooks and enroll in 25 credit hours, but the price of a textbook rose to $110 per book and the tuition price increased to $400 per credit hour. The base year for computing a “student price index” using this information is 2015. What is the value of the student price index in 2015? In 2016? Show your work. What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two measures of investment spending would be appropriate? Explain. Which of the following goods are usually intermediate goods and which are usually final…arrow_forward
- Which of the following statements is FALSE? Choice 1 of 4:Cost-benefit analysis allows the scale of the activity to either increase or decrease. Choice 2 of 4:Both cost-benefit and cost-effectiveness analyses construe the policy problem as involving some production relationship between resources and objectives. Choice 3 of 4:If the Governor asks you to find the lowest-cost way for the state of Colorado to meet a minimum required air pollution abatement level, she is asking you for a cost-effectiveness analysis. Choice 4 of 4:If the Mayor tells you he will set aside a $20 million budget spending to reduce homelessness and asks you for an analysis of what option would be the most efficient, he is asking for a cost-benefit analysis.arrow_forwardSuppose the government establishes a per-unit tax on new car sales. The tax funds will be directed to a new pollution abatement program. Consumers in this market watch the price of cars carefully, since a car purchase represents a significant percentage of consumers’ incomes. On the supply side of the market, the car manufacturers use highly specialized equipment and production processes to produce cars, and find it relatively difficult and costly to quickly move into the production of alternative consumer products. Based on this information above, determine which side of the market (demand or supply) is more price elastic. Make a sketch of the demand and supply in this market, in which the relative slopes reflect the relative elasticities you have noted. On your graph, show the impact of the tax on this market, with your graph showing clearly who will bear the greater percentage of a car tax burden, consumers or producers. (Assume that the sellers make the tax payments to the…arrow_forwardHow does the typical state budget process work, and what are the various actors involved in that process? What are the main characteristics of a sustainable budget? What are the main sources of revenues for states and local governments? Is it possible to balance the demands for government services with existing revenue sources? What have been the various approaches advocated to reform budgeting processes at the state and local levels? What are the five key areas of future state and local budget needs? Which one do you think is the most critical and why? Explain. assignment #10 be sure to cite your source(s) using APA Stylearrow_forward
- Provide a justification for why or why not additional taxpayer dollars should be used to make college more affordable during a time when college tuition is increasingly out of reach for American families. (Public Goods and Common Resources)arrow_forwardThe Consumer Act of the Philippines or also known as RA 7394 is a law embodies the state policy on the protection of consumers and establishes standards of conduct for business and industry in the country. It is also undeniable that consumer products related injuries are gradually increasing each year as the society prospers. As a consumer, how can you contribute to alleviate consumer products related injuries and help the government avoid unethical consumption and production? Back up your claims with realistic examples.arrow_forwardCompare placing a tax on gasoline to a mandated increase in the average fuel efficiency of each car in terms of reducing the usage of gasoline, reducing greenhouse gases, and also providing consumers with choice in their vehicle selection. Analyze the impact on consumers, service stations, and car manufacturers.arrow_forward
- The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called “closing the Washington Monument.” When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Is this strategy economically efficient? In other words, does it minimize the utility loss from a budget cut? Explain. If this strategy is not economically efficient, what is the incentive to pursue such a strategy?arrow_forwardWhich of the following statements is (are) correct? (x) One of the largest categories of federal government spending is Social Security and it is growing because the elderly population is increasing due to longer life expectancy for U.S citizens. (y) Although government spending on national defense includes weapons, military vehicles, and salaries of military personnel, tax revenue is not used to pay for those items. (z) The largest single expenditure category for most state and local governments is education. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) onlyarrow_forwardImpact Inc. is an economic consulting firm that prepares economic impact reports for cities and for events. Suppose that it has been hired by the city commission of Fan City on a proposal to hold a Monster Truck event in the city’s stadium one weekend. Which of the following would be considered an “indirect effect” in the Economic Impact report? a. The salaries earned by the truck manufacturers. b. The salaries (incomes) of the city officials. c. The value of promotional tickets given away for free to local charities. d. The value of the concession food that the provider will buy from local sources. e. The spending done by the security staff the week after the event.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 Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author: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