Describe how taxes can lead to efficiency losses. Your answer should include a graph and an explanation of what the graph illustrates.

Q: What is one benefit to business if the government runs a surplus?

A: When a government's entire revenue for a certain period, such as a fiscal year, exceeds its total…

Q: What is progressive tax? Write its merits and demerits.

A: A tax is described as one that the government imposes on citizens who participate in the economy in…

Q: pay Based on your yearly income above, calculate the amount of tax each income bracket would under a…

A: A progressive tax refers to the tax rate which increases (or progresses) with the increase in…

Q: What happens to a country's economy if there is a high tax for the company that earns more in that…

A: Taxes are the mandatory payments that has to he made to the government.

Q: The tax on cigarettes in New York City is one of the highest in the nation—$5.85 per pack. What are…

A: Tax is a mandatory unilateral or one way payment made by the public towards the government in the…

Q: What is tax system? Define and explain in your own words.

A: Taxation is the process by which a taxing authority, usually a government, imposes a financial…

Q: What will the federal government do to taxes?

A: The federal government uses fiscal policy as a tool to achieve economic stability.This involves…

Q: Where does our taxes goes? What are the things that the government do to our taxes? Who are those…

A: As economies emerged, economic agents increased their demand for goods and services. Production of…

Q: The following graph shows the daily market for jeans. Suppose the government institutes a tax of…

A: In a free market the price and quantity is determined by the forces of demand and supply. The point…

Q: How can the government improve tax collections without imposing much tax to the consumer?

A: When a taxing body, typically a government, levies or imposes a financial responsibility on its…

Q: Think of two ways the government affects life, one you perceive as positive and one you perceive as…

A: Regulators, taxation, and subsidies are all used by the government to address market…

Q: What is the nature of Taxation?

A: Government and private sector balance the functioning of economy. With public and private sector,…

Q: why is the tax rate 6?

A: A pigouvian tax will be optimal when it is set equal to marginal social pollution cost at the…

Q: Write a paragraph that explains how the U.S. tax system has become less progressive since the 1950s.

A: In the last 50 years, the federal tax system of the US has undergone 3 main and powerful changes.…

Q: How important is tax in a government?

A: A tax refers to a compulsory financial fee or some other type of levy imposed on a taxpayer by a…

Q: What are the fundamental principles of taxation?

A: Taxation means levying or imposition of particular amount of tax on individuals by the government in…

Q: Suppose a commodity tax is legally placed on paper manufacturers. How the tax is split between the…

A: The burden of tax is shared by both consumers and producers irrespective on whom the tax is imposed.

Q: Choose one of the following examples and explain whether you think that the government should ban…

A: Banning any product is not the ultimate solution to any of the issue because it will create a…

Q: Suppose the government wants to maximize tax revenue. Some policymakers suggest taxing cigarettes,…

A: Tax revenue is the product of the tax amount and the quantity of the good consumed. The tax creates…

Q: benefits of subsidies

A: A subsidy is an incentive given by the government to individuals or businesses in the form of cash,…

Q: Where do most city and local taxes come from

A: The local taxes are the most crucial part of local government. Such taxes are then used for distinct…

Q: Why do producers have more interest in government regulations than consumers do?

A: Government regulations are those laws and rules which are used for placing limitations on businesses…

Q: In choosing what type of tax to use, what factors does government take into consideration?

A: In choosing the type of tax to use, the Government should consider all the 4 options:

Q: lease refer to the description of a tax on a market, represented by the graphic  What is the price…

A: Given the market where equilibrium is achieved where demand is equal to supply. At price of 6 $,…

Q: Please refer to the description of a tax on a market, represented by the graphic What is the price…

A: Market equilibrium is that condition where market Demand is equal to market supply. After imposing…

Q: Government departments can be producers and consumers. Explain the statement

A: In the study of economics, the producer is defined as the individual who is manufacturing and…