Assertion for the levying of a tax on air polluters
Use the circular flow model to confirm this assertion for the levying of a tax on air polluters?
Expert
This will be an increase in net taxes paid by business. Since business will regard this as an increase in costs, it will decrease its demand for resources, leading to a decreased flow of income to the resource markets. With less money income, households will decrease their consumption demand for goods and services from businesses and business receipts will be less. Also, the decrease in household income will lead to a decrease in net household taxes paid to government.
The distribution of income will be slightly away from profits and therefore toward the other three categories. To the extent that total tax revenues increase, there will be a slight increase in allocation of resources to government away from private enterprise. There will also likely be a reallocation of resources towards pollution control equipment. The increased costs to business, having caused decrease in supply, will tend to increase unemployment and prices.
There are THREE questions in this assignment. The overall word length for this assignment should be in the range of 2,000-2,500 words. You may incur a penalty if you exceed the upper value. You must state the total number of words
Question: In June 2005, a Big Mac sold for 6,000 pesos in Colombia and $3.00 in the United States. The exchange rate in June 2005 was 2,300 pesos per US Dollar. So, on Big Mac purchasing power parity gr
What are the Causes and theories of inflation?
The utilitarianism of Jeremy Bentham would clash most strongly along with the philosophic principles of: (w) the epicureans who followed the teachings of Epicurus [c. 341 to 271 BC]. (x) hedonism. (y) the Greek philosophers and mediev
How will the goods and services be produced?
Describe redistributive effects of inflation?
A laissez-faire government is restricted to finding: (1) property rights within a simple fashion and to enforcing private contracts. (2) market prices which guarantee equitable resource allocations. (c) how resources will be allocated efficiently. (4)
I have a problem in economics on Comparative advantage in production. Please help me in the following question. The oranges are grown in Florida and potatoes are grown in Maine mainly since: (i) orange-grower’s in Maine have not lobbied effectiv
Which of the given is not true for a firm within perfect competition: w) Profit equivalents total revenue minus total cost. x) Price equivalents average revenue. y) Average revenue is greater than marginal revenue. z) Marginal revenue equivalents the
Elucidate state expenditures and receipts for all states in 1998?
18,76,764
1938972 Asked
3,689
Active Tutors
1449432
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!