Show how moving from a lump sum tax to a linear tax affects outcomes in terms...

Show how moving from a lump sum tax to a linear tax affects outcomes in terms of output and work effort. What is the effect on economic efficiency? How does your picture show this? You should use a linear PPF (so that the wage without distortions is constant everywhere).

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Rahul Sunny answered 2 years ago

Compare different types of taxes (lump-sum tax, income tax, sales tax, per-unit tax, etc.) in terms...

Compare different types of taxes (lump-sum tax, income tax, sales tax, per-unit tax, etc.) in terms of their impact on the efficiency with regards to the second welfare theorem. What do you think the tax system should be in order to have a more efficient and fair allocation? He said make your own assumptions about parameters and make your resasoning

what happens to consumption and leisure if a lump sum tax is introduced instead of an...

what happens to consumption and leisure if a lump sum tax is introduced instead of an income tax. assume lump sum tax raises same revenue (in consumption units) as the income tax

Western purchased land and a building for the lump sum of $3,000,000. To maximize their tax...

Western purchased land and a building for the lump sum of $3,000,000. To maximize their tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the land. A more realistic allocation based on assessed value would have been 70% to the building and 30% to the land. 1. What impact(s) will these actions have on the company’s financial statements? Be sure to discuss the balance sheet and the income statement separately, and be specific...

Starting from a short-run equilibrium, show and explain how a reduction of the income tax affects...

Starting from a short-run equilibrium, show and explain how a reduction of the income tax affects GDP, using the money-interest, the expenditure schedule and the AD-AS graphs. Assuming that at the initial point the GDP is at its potential level, explain how self-correcting mechanisms work after the reduction of the income tax.

Suppose that the lump-sum and the proportional tax systems coexist in the economy. Consider the following...

Suppose that the lump-sum and the proportional tax systems coexist in the economy. Consider the following fiscal policy changes: the government increases the labor income tax rate and gives the money back to the consumer through a decrease in lump-sum tax in a way that an increase in consumer’s labor income tax amount and a decrease in lumpsum tax amount offset each other. Are consumer’s optimal choices affected by these fiscal policy changes? Explain why or why not. (Note: There...

4. Other things being equal, a lump sum tax is at least as good for a...

4. Other things being equal, a lump sum tax is at least as good for a consumer as a quantity tax that collects the same revenue from him. TRUE or FALSE (Explain)

what happens to consumption and leisure if a lump sum tax (raises same revenue as income...

what happens to consumption and leisure if a lump sum tax (raises same revenue as income tax) is introduced instead if income tax.

Life insurance provides a generally income tax-free lump sum of money for your survivors in the...

Life insurance provides a generally income tax-free lump sum of money for your survivors in the event of your death. The appropriate amount of insurance depends only depends on your age. True or False?

The monthly income from a piece of commercial property is $1,500 (paid as a lump sum...

The monthly income from a piece of commercial property is $1,500 (paid as a lump sum at the end of the year). Annual expenses are $2000 for upkeep of the property and $800 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago. Assume 52 weeks in a year andend-of-year cash flows. a. If i=14%per year (the MARR) is an acceptable interest rate, how much could you afford to pay now...

The monthly income from a piece of commercial property is $1,400 (paid as a lump sum...

The monthly income from a piece of commercial property is $1,400 (paid as a lump sum at the end of the year). Annual expenses are $2,000 for upkeep of the property and $900 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago. Assume 52 weeks in a year and end-of-year cash flows. a. If i=15% per year (the MARR) is an acceptable interest rate, how much could you afford to...

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