Consider the Cobb-Douglas utility function Suppose that a poll tax T = Ti for all i is levied on each of N members of society. Tax revenues are used to finance a public good G. a. Show that the majority voting outcome involves the amount of public good G = αNYm, where Ym denotes the before-tax income of the median voter. b. Now suppose that a proportional income tax Ti = tYi is levied. Show that the majority voting outcome involves the amount of public good is the mean income level. c. When income is uniformly distributed, which outcome is closest to the ancient outcome?

Q: Identify the following weighted voting system. ​   ​     one person, one vote     veto power…

A: Here, a specfiic voting system is given as the total number of votes is 84, which are divided into…

Q: Consider an ad-valorem tax on a good X. The Demand for good X is constant elasticity with elasticity…

A: The elasticity of demand(Ed) measures the responsiveness of quantity(Q) demanded to a change in…

Q: 1. The monthly demand function is p, =31,000,000 --q° and the supply function 3 before taxation is…

A: Inverse Demand: Pd = 31000000 - 1/3q2  Inverse Supply: Ps = 1500000+4500q

Q: Contrast the benefits-received and ability-to-pay principles of taxation. Which of the following…

A: Since you have asked multiple questions, we will answer only first question for you. If you have any…

Q: Some economists have argued that taxation is one of the causes of economic inefficiency. They claim…

A: There is a mindset believing that reducing the marginal tax would spur the growth of the economy.…

Q: Primaries are only held in states that cannot decide which nominee to choose in an election year.…

A: Since you have asked unrelated multiple questions, we will solve the first question (question#8) for…

Q: An excess burden is present when taxpayers alter their behavior on account of taxation

A: False.

Q: Suppose the market is in equilibrium. Then the government imposes a per unit tax in the market.…

A: The demand curve is the downward sloping curve.Supply curve is the upward sloping curve.Equilibrium…

Q: The following table shows the number of voters preferring various amounts of spending on a new…

A: The median is a statistical measure that represents the middle value of a dataset when it is…

Q: Outline the median voter theorem and explain its importance to the successful application of a…

A: Hi there! To help you more with your assignment, here are additional comprehensive references you…

Q: What are the consequences of an increase in direct taxation?

A: Tax is the charge which is levied by the government. It is a source of government revenue which the…

Q: progressive income tax has a greater deadweight loss compared to a proportional incone tax ?…

A: Progressive income tax is a situation when the level of taxes increases with the increase in income…

Q: Please no written by hand "No voting system is perfect." What does it mean by economist K. Arrow?…

A: The statement "No voting system is perfect" refers to the work of economist Kenneth Arrow. Arrow's…

Q: The fact that lower-income families will spend a higher percentage of their income on tangible goods…

A: Taxation system refers to the way of taxing the income of people by the state government or central…

Q: Contrast the benefits-received and ability-to-pay principles of taxation. Which of the following…

A: In public economics, the theory of taxation argues that it is imperative for the state to raise…

Q: If a tax of $0.90 is imposed, what is the tax revenue?

A:

Q: Which of the following statements is false?   a. Public choice economists often explain low voter…

A: Voting: Voting is a decision that makes on collective basis, that is the outcome of voting will be…

Q: Distinguish between the benefits-received and the ability-topay principles of taxation. Which…

A: The benefits-received theory ensures that governments can supply public goods and services in much…

Q: With a progressive tax, those with income tend to pay a

A: A Tax System in which there is an increase in the tax rate as the taxable income increases is known…

Q: 4. Suppose a market has the following supply and demand equations: QD = 380 - 10P and Q = 80 + 5P.…

A: tax revenue refers the revenue collected from the tax and is the revenue for the government here we…

Q: Describe Progressive taxation. And Regressive taxation

A: Taxation is the process by which a government or other authority collects money from individuals and…

Q: Discuss how a government might use taxation to affect the distribution of income

A: In an economy, the inequality of income distribution can be explained by the situation when a richer…

Q: Discuss the effects of direct taxes on consumer behavior.

A: Direct taxes are those taxes which are payable on the income of an individual or entity. Income tax,…

Q: Suppose the following model of govemment efficiency. Usity function over consumption of private…

A: Given: Utility function where country desires to have = 2 units of consumption Exogenous Income…

Q: If a tax is levied on the buyers of a product, the tax burden will fall entirely on the buyers. A.)…

A: Tax is revenue for the government.

Q: Differentiate between “direct taxation” and “indirect taxatio

A: Taxation can be defined as the process of imposing charges or levies by the government on…

Q: 1. The following data depict the fiscal characteristics of two school districts in a metropolitan…

A: Property value is the sum of the price a buyer is willing to pay and the price a seller will take.…

Q: Compare and contrast the following concepts and indicate their implications to the provision of…

A: Public economics' primary area of study is how the government affects the economy. Economists that…

Q: 1) Suppose the figure represents the Laffer Curve for income taxes on high-income earners. If the…

A: The Laffer Curve shows the relationship between tax rates and the amount of tax revenue collected by…

Q: Compare progressive, regressive, and proportional taxes. Give at least oneexample of each type of…

A: A proportional tax is the one in which a fixed percentage of tax is imposed on the income of all the…

Q: TRUE or FALSE and EXPLAIN The corporate income tax is a progressive tax because profits from…

A: Tax can be considered as the contributions made by the public toward government expenditure. It is…

Q: suppose the government levles an excise tax of $3.00 per pack on cigarette buyers. Draw after-tax…

A: The taxes are the form of market regulations that drives a wedge between the price paid by the…