Ch.31 Public Choice Theory and the Economics of Taxation
... -Some people may “vote with their feet” by moving into political jurisdictions where the median voter’s preferences are closer to their own. ...
... -Some people may “vote with their feet” by moving into political jurisdictions where the median voter’s preferences are closer to their own. ...
Econ 426, Fall 2009 Final Exam Name: __________________________________________
... (65 points, 5 each) Are the following statements true, false, or uncertain? You must explain your answer clearly. a. Governments of geographically small nations often decide to generate more tax revenue by consumption taxes and less tax revenue by income taxes. ...
... (65 points, 5 each) Are the following statements true, false, or uncertain? You must explain your answer clearly. a. Governments of geographically small nations often decide to generate more tax revenue by consumption taxes and less tax revenue by income taxes. ...
Figure 8-4
... c. the supply of the product is more elastic than the demand for the product. d. the demand for the product is more elastic than the supply of the product. ...
... c. the supply of the product is more elastic than the demand for the product. d. the demand for the product is more elastic than the supply of the product. ...
indirect taxes and subsidies File
... goods – the incidence of the tax falls on the consumer. Cigarettes are inelastic. If the government imposed a 1 chf specific tax on a packet of cigarettes, who would carry the burden – the smokers or the cigarette companies? ...
... goods – the incidence of the tax falls on the consumer. Cigarettes are inelastic. If the government imposed a 1 chf specific tax on a packet of cigarettes, who would carry the burden – the smokers or the cigarette companies? ...
Econ 300- Second Graded Problem Set
... a. Would the deadweight loss from this tax likely be greater in the first year after it is imposed or in the fifth year? b. Would the revenue collected from this tax be greater in the first year after it is imposed or in the fifth year? 3. Answer the following problem using Example 4.2, the effects ...
... a. Would the deadweight loss from this tax likely be greater in the first year after it is imposed or in the fifth year? b. Would the revenue collected from this tax be greater in the first year after it is imposed or in the fifth year? 3. Answer the following problem using Example 4.2, the effects ...
Taxation, Incidence, Distribution
... above and beyond the tax revenues collected. • also refer as welfare cost or deadweight loss • Other Key Concepts: – Consumer surplus, social surplus ...
... above and beyond the tax revenues collected. • also refer as welfare cost or deadweight loss • Other Key Concepts: – Consumer surplus, social surplus ...
Homework 3
... 6. Maria values the math book that she bought at the start of the semester for $40 at only $15 today, and its sell-back price at the Co-op is just $10. Amy, who values the book at $25, offers Maria $20 to buy the book. Is selling the book to Amy for $20 an efficiency improvement? 7. Which is a Paret ...
... 6. Maria values the math book that she bought at the start of the semester for $40 at only $15 today, and its sell-back price at the Co-op is just $10. Amy, who values the book at $25, offers Maria $20 to buy the book. Is selling the book to Amy for $20 an efficiency improvement? 7. Which is a Paret ...
Quiz5
... Question 1. [6 marks] Suppose market demand is given by Qd 50 2P and market supply is given by Q s 3P . a) [2 mark] With no tax, what is the market equilibrium price and quantity? Answer: To find the equilibrium, set quantity demanded equal to quantity supplied. ...
... Question 1. [6 marks] Suppose market demand is given by Qd 50 2P and market supply is given by Q s 3P . a) [2 mark] With no tax, what is the market equilibrium price and quantity? Answer: To find the equilibrium, set quantity demanded equal to quantity supplied. ...
CHAPTER OVERVIEW
... might this underallocation get resolved via the means suggested by the Coase theorem? Using Figure 5.1b in the text the following can be said. The market demand curves for apples and honey, Da and Dh, would not include the positive externalities accruing to the production of the other good. The tota ...
... might this underallocation get resolved via the means suggested by the Coase theorem? Using Figure 5.1b in the text the following can be said. The market demand curves for apples and honey, Da and Dh, would not include the positive externalities accruing to the production of the other good. The tota ...
Econ 2 Final Exam What Is Covered An Outline of Topics Covered In
... • Implications of pollution as a negative externality • Why efficient pollution control requires setting marginal abatement cost to be the same for all firms – Why standard regulations fail at this – Why a pollution tax succeed – Why marketable pollution permits succeed • Auctioning off pollution pe ...
... • Implications of pollution as a negative externality • Why efficient pollution control requires setting marginal abatement cost to be the same for all firms – Why standard regulations fail at this – Why a pollution tax succeed – Why marketable pollution permits succeed • Auctioning off pollution pe ...
Pigovian tax
A Pigovian tax (also spelled Pigouvian tax) is a tax applied to a market activity that is generating negative externalities (costs for someone other than the person on whom the tax is imposed). The tax is intended to correct an inefficient market outcome, and does so by being set equal to the social cost of the negative externalities. In the presence of negative externalities, the social cost of a market activity is not covered by the private cost of the activity. In such a case, the market outcome is not efficient and may lead to over-consumption of the product. An often-cited example of such an externality is environmental pollution.In the presence of positive externalities, i.e., public benefits from a market activity, those who receive the benefit do not pay for it and the market may under-supply the product. Similar logic suggests the creation of a Pigovian subsidy to make the users pay for the extra benefit and spur more production. An example sometimes cited is a subsidy for provision of flu vaccine.Pigovian taxes are named after economist Arthur Pigou who also developed the concept of economic externalities. William Baumol was instrumental in framing Pigou's work in modern economics.