--%>
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 : Opportunity Costs to Society of Funding

    The clearest signals of the opportunity costs to society of funding one investment in place of another are relative: (w) interest rates, expected rates of return, and also expected economic profit. (x) production costs for various goo

    		•
  • Q : Explain about price-taker The purely

    The purely competitive firm: (w) is a price-taker. (x) confronts an inelastic demand curve. (y) should decide what price to charge. (z) maximizes total revenue. How can I solve my Economics problem

    		•
  • Q : Present value of bond paying on

    At an interest rate of 5 percent per year the present value of a bond paying $100 yearly forever is: (a) infinite. (b) $500. (c) $909.10. (d) $2000. I need a good answer on the topic of Economics problems. Please give me your sugge

    		•
  • Q : Satisfaction gained from consuming

    The Law of Diminishing Marginal Utility defines that the: (i) Satisfaction gained from consuming additional units of a good ultimately decline. (ii) Extra cost of energy from the public utility will ultimately decline. (iii) MUa/Pa = MUb/Pb = ... = MUz/Pz. (iv) Ux/X =

    		•
  • Q : Illustration of most complete monopoly

    The most complete monopoly by the given list would be: (1) McDonald’s dominance in marketing fast food burgers. (2) the Federal Reserve System [i.e., an arm of the government] issuing all US currency. (3) limiting subsidized low tuitions at stat

    		•
  • Q : Market Price in intervention Let’s take

    Let’s take a perfectly competitive market in which the market demand curve is provided by Qd = 20 − 2Pd and the market supply curve is provided by Qs = 2Ps. a) Determine the e

    		•
  • Q : Present value of asset by financial

    When the interest rate is 5% and a financial investment produces annual payments of price $50,000, in that case the present value of this asset is: (w) $1,000,000. (x) $5,000,000. (y) $500,000. (z) $10,000,000.

    Q : Firms producing similar good Firms

    Firms which operate numerous plants that produce similar good are: (i) Vertically integrated. (ii) Generating leakages in circular flow. (iii) Proprietorships. (iv) Horizontally integrated. Can someone please help me in finding out

    		•
  • Q : Inefficiency of market equilibrium When

    When firms have market power although do not price discriminate perfectly, in that case the market equilibrium will be inefficient since: (w) P = AC = MC. (x) total revenue equals total costs [TR = TC]. (y) MSB = P > MC = MSC. (z)

    		•
  • Q : Typical pure competitor firm in industry

    When this firm is a typical pure competitor within this industry as in demonstrated figure, then the firm is: (i) making normal accounting profit. (ii) making zero economic profit. (iii) breaking even. (iv) into an industry within long run equilibrium

    		•