--%>
Assignment Help - homework help

Question on tax payer

New agricultural program named as the Payment-in-Kind Program is introduced by the Reagan Administration, in the year of 1983. In order to distinguish how the program performed, consider the wheat market. Had the government not given the wheat back to the farmers, this would have stored or destroyed it. Do tax payers gain from the program? What potential problems does the program form?

Taxpayers gain since the government is not needed to store the wheat. Although everyone seems to gain from the PIK program, it can only last while there are government wheat reserves. The PIK program supposed that the land removed from production may be restored to production when stockpiles are exhausted. If it cannot be done, consumers may eventually pay more for wheat-based products. At last, farmers are taxpayers too. As producing the wheat ought to have cost something, the program offers them a windfall profit.

   Related Questions in Microeconomics

  • Q : Marginal revenue product or MRP curve I

    I have a problem in economics on Marginal revenue product or MRP curve. Please help me in the given question. Demand for the labor through a monopolist in the product market is its: (i) Value of marginal product (or VMP) curve. (ii) Marginal revenue p

    		•
  • Q : Statement of Law of Demand The law of

    The law of demand defines that when a good’s price increases, its quantity demanded will drop: (1) No matter what occurs to other variables. (2) When all as well is supposed constant. (3) Since its demand curve shrinks. (4) If substitutes become

    		•
  • Q : Ceteris Paribus assumption The ceteris

    The ceteris paribus (all as well constant) assumption is most obviously implicit in the statement of a tailor who states that, “We will vend more suits in the month of May of 2008: (i) Than we sold in the month of May 2003. (ii) Than we sold in

    		•
  • Q : Limitation in Lorenz curve A Lorenz

    A Lorenz Curve cannot be used to demonstrate scientifically how the: (w) income is distributed among members of society. (x) wealth is distributed in between members of society. (y) taxes alter the distribution of income. (z) income must be distribute

    		•
  • Q : Zero economic profits in long-run

    In long-run equilibrium, a monopolistically competitive firm is making: (a) economic profits. (b) zero economic profits. (c) negative economic profits. (d) revenues that exceed total costs. Can anybody suggest me t

    		•
  • Q : Moderately increasing costs When this

    When this purely competitive industry is described by moderately increasing costs, in that case line C would represent: (w) the demand curve facing the entire industry as a whole. (x) market-period supply. (y) long-run market supply. (z) short-run sup

    		•
  • Q : Burden of tax reduce on suppliers of

    Most of the burden of an excise (i.e., per unit) tax would be borne through consumers of the taxed good, although some of the tax burden would reduce on suppliers of the good demonstrated in: (w) Panel A. (x) Panel B. (y) Panel C. (z)

    		•
  • Q : Comparative Advantage in opportunity

    The most important declines in opportunity costs of multiple goods for the consumers and greatest rises in the value of net production for all societies everywhere tend to be realized whenever production is organized in accord by: (1) The optimal clas

    		•
  • Q : Minimum legal price in intersection of

    When a minimum legal price of a good is set below the intersection of the supply and demand curves there will be: (1) shortages and pressures for decreases in price. (2) pressures for increases in price and the emergence of black mark

    		•
  • Q : Tax on a good tends to make The tax on

    The tax on a good tends to make: (i) Inflationary pressure the govt. can disperse by cutting its spending. (ii) The wedge among prices buyers pay and the prices sellers obtain. (iii) Rises in supply from the viewpoint of buyers. (iv) More quick transa

    		•