2. Government functions For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served. The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national defense). Productive function whereby the government promotes economic stability through fiscal policies O Productive function whereby the government produces goods that are difficult for private markets to supply Productive function whereby the government redistributes income from rich to poor Protective function whereby the government enforces property rights U.S. taxpayers who attended a college or university in the past year can deduct the interest paid on student loans from their taxable income. Maintaining competition Reallocating resources Promoting stability O Redistributing income

2. Government functions For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served. The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national defense). Productive function whereby the government promotes economic stability through fiscal policies O Productive function whereby the government produces goods that are difficult for private markets to supply Productive function whereby the government redistributes income from rich to poor Protective function whereby the government enforces property rights U.S. taxpayers who attended a college or university in the past year can deduct the interest paid on student loans from their taxable income. Maintaining competition Reallocating resources Promoting stability O Redistributing income

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section: Chapter Questions

Problem 1SQP

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There are several books that cover important information to validate the fact that LOCAL government IS the level of government that has a MUCH GREATER impact on the daily lives of Americans than any other level of government and ironically it is the level of government that gets the least attention from the public and from the media. Participation in local government affords citizens the most control over their own lives but unfortunately it is the level of government with the least voter turnout. Sad but true. Answer the following question: Texas is one of seven states without a state income tax. Should Texas establish a state income tax? Explain 3 advantages and 3 disadvantages and your stand on this issue.
Question 1 Consider an economy with two firms and a government. Firm 1 produces 10000 units of good X, which it sells for $20 per unit. It uses this revenue to pay $140000 in wages, $10000 in taxes, and $10000 in interest on a loan, with the rest as profits. Firm 1 sells some of its output to consumers, and some to Firm 2 as an intermediate good in their production process. Firm 2 uses good X as an input into its manufacturing process. It buys 8000 units of good X and uses them to create 1000 units of good Y, which it sells for $400 per unit. It pays $200000 in wages and $20000 in taxes, with the rest as profits. The government takes in taxes from only these two firms, and uses it to pay wages to provide government services, for instance national defense. Please calculate GDP using the three different methods. (Of course, you'll arrive at the same answer; however, indicate clearly what values you're using in each case to arrive at the final answer, so as to illustrate you know what is…
Please elaborate on the economic role of the government under the two different economic theories of "laissez-faire" and "government intervention". What kind of theory do you think the Hong Kong Special Administrative Region Government pursues? why?
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elaborate on two primary functions of the government in the economy.
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In many models, the amount of government offered services that is socially and economically efficient tends to be much smaller than that is actually produced and given to the people. Discuss why this appears to be the case, and show with a graph where the efficient level of government output would lie with respect to actual output. Do you understand why historically, the level of government services provided tends to rise irrespective of what the efficient level ought to be? Why would this be?
1.A. What is the empirical correlation between per capita income and the share of Government in the economy? Is there a causal relationship between the two variables? Why or why not? B. List six broad areas of modern government involvement that have important economic consequences. Briefly discuss each one of the areas that is on your list. (Please note that we discussed more than ten broad areas of key government involvement that concern the economy.) 2.A. In the Midwestern United States, where winds tend to blow from west to east, states tend to approve new polluting industries more easily near their eastern borders than in other parts of the state. Explain this tendency using the theory of externalities. Is this is a socially optimal outcome. Why or why not? If not, is there anything that could be done to improve upon this outcome? B. What are some of the measures that could be taken to reduce the future consequences of climate change? Consider one measure and analyze it in…
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