Question on tax payer, New agricultural program named as the Payment-in-Kind Program is

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.

View Complete Question

Related Questions in Microeconomics

Q : Labor markets profit maximization When,

When, after hiring the very last worker, the organization’s profit is similar as it was before the last worker was hired, then the firm must: (1) Hire more workers to raise the profit. (2) Layoff some workers to raise the profit. (3) Not appoint any more workers

Q : Normal accounting profit with zero

Accounting profits are normal along with zero economic profits while there is: (1) monopoly power which has not yet been capitalized. (2) unpredicted short run surges within demand for a good. (3) uncertainty therefore unpredictable e

Q : Should third World limit pollution ‘In

‘In developing countries there are some controls on aspects of pollution like exhaust fumes. How would you evaluate whether these countries, from their point of view, must invoke legislation to enhance the atmosphere in these respects?’

Q : Barriers prevent entry in long run

Within the long run, a monopoly cannot continually produce economic profit unless: (w) economies of scale are important. (x) corporate taxes are lowered. (y) barriers to entry are significant. (z) the monopolist maximizes profit.

Q : Define Direct taxes Direct taxes :

Direct taxes: Whenever the liability to pay tax and the burden of that tax fall on similar person, it is termed as direct tax. Illustrations are: wealth tax, income tax, corporation tax, gift tax and so on.

Q : Spending on rail safety ‘How be

‘How be supposed to the government decide whether to spend in additional rail safety measures?’

Q : Transfer payments in Market Transfer

Transfer payments into the U.S.: (w) have little effect on income distribution. (x) are mainly received by wealthy families. (y) tend to reduce poverty. (z) eliminate the cause of poverty. Please choose the right a

Q : Demand Price equivalent to market price

Can someone please help me in finding out the accurate answer from the following question. People will purchase goods when their demand prices equivalent or surpass: (1) Transaction costs. (2) Market prices. (3) Subjective prices. (4) Price indexes.

Q : Monopsonistic labor market-wage

In the monopsonistic labor market in which wage discrimination is not possible, the raise in the minimum wage: (i) Essentially outcomes in less employment and higher wages. (ii) Might result in both the higher level of employment and the higher wage rate. (iii) Unifor

Q : Maximum possible economic profit of firm

This firm’s maximum possible economic profit equals: (i) $12,000 per period. (ii) $16,000 per period. (iii) $20,000 per period. (iv) $24,000 per period. (v) $28,000 per period.

Discover Q & A

Leading Solution Library

Avail More Than 1423031 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925433
Asked

3,689

Active Tutors

1423031

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment