) You are still a government official. But now suppose you are taxing a good with...

) You are still a government official. But now suppose you are taxing a good with elastic supply such as Uber drivers. a)Who will end of paying much of the tax – the consumers or the drivers?b)Why might imposing a tax on Uber drivers raise far less revenue than anticipated?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Suppose that the government was taxing consumers of widgets by $3 per unit. Now it repeals...

Suppose that the government was taxing consumers of widgets by $3 per unit. Now it repeals the tax on consumers and replaces it with a $3 per unit tax on producers. What will happen to the price of widgets? a. The price will rise by $3 b. The price will rise, but by less than $3 c. The price will be unchanged d. The price will fall, but by less than $3 e. The price will fall by $3

Suppose a closed economy with no government spending or taxing initially.

6Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 200 and the aggregate consumption function is given by C = 200 + 0.50Y. And suppose that, if at full employment, the economy would produce an output and income of 3200By how much would the government need to raise spending (G) to bring the economy to full employment?7Suppose a closed economy with no government spending which in equilibrium is producing an...

Question 6 Unsaved Suppose a closed economy with no government spending or taxing initially. Suppose also...

Question 6 Unsaved Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 150 and the aggregate consumption function is given by C = 250 + 0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3200 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value

Even when there are no externalities in a market, a government may still tax a good...

Even when there are no externalities in a market, a government may still tax a good such as petrol to earn revenue. Describe what happens to each of the surpluses (including total surplus) in the market for petrol when this occurs, and why. What elasticity is the market for petrol likely to exhibit? Explain how elasticity influences the impact of the price change on total surplus.

Suppose a government official wants to know what proportion of residents are infected with the an...

Suppose a government official wants to know what proportion of residents are infected with the an illness. There are a limited number of tests. So a random sample of 180 residents was taken, and these residents were tested for the illness. Of these 180 people, 36 were found to be infected with the illness. a) Find a 95% confidence interval for the true proportion of residents who are infected. b) a healthcare professional says they suspect that fewer than 30%...

Suppose the U.S. government has to raise a given amount of tax revenue by taxing two...

Suppose the U.S. government has to raise a given amount of tax revenue by taxing two goods with different elasticities of demand. What policy advice could you provide that would minimize the welfare cost of taxation? Do government excise tax policies seem to follow your advice? Give some examples and/or counter-examples.

Imagine that you are a government official in a local health department, in charge of an...

Imagine that you are a government official in a local health department, in charge of an immunization program that provides free immunizations to all uninsured children in your county. The County Board of Supervisors (which is in charge of all county health care related matters, and funds your department) has asked you to justify your program's budget by demonstrating that your program has made significant progress over the past two years, increasing the immunization rates of low-income children in the...

Suppose a government official in Phoenix, Arizona, wants to know what proportion of Phoenix residents are...

Suppose a government official in Phoenix, Arizona, wants to know what proportion of Phoenix residents are infected with the COVID-19 virus. Because of the limited availability of tests, she cannot test all the residents of Phoenix. A random sample of 180 Phoenix residents was taken, and these residents were tested for the virus. Of these 180 people, 36 were found to be infected with the virus. Find a 95% confidence interval for the true proportion of Phoenix residents who are...

Q3 : Now suppose the government (NOT the CB) wants to stabilise the shock in the...

Q3 : Now suppose the government (NOT the CB) wants to stabilise the shock in the short-run. Explain whether it should increase the government deficit (∆G > ∆T ) or reduce it (∆G < ∆T ), and how it works. Q4 : Now suppose the government doesn’t do anything, and the CB wants to stabilise the shock. If the CB wants to bring output Y back to its long-run equilibrium level, explain whether it should decrease or increase the money...

In this case study you investigate how good the official ‘unemployment rate’ captures the unemployment in...

In this case study you investigate how good the official ‘unemployment rate’ captures the unemployment in the economy. You should reference the two articles provided on this subject above, the material in your textbook related to this topic and one more article of your choosing. Address the following questions in your paper: 1. Does the official unemployment rate capture the true unemployment in the economy? 2. What are the ways to address any flaws in the report?

Subjects