In macroeconomic, How does the government tax?

Q: What is an example of a market that govenrments should not tax for economic reasons?

A: Taxes are the economic instruments given at the hands of the government. Taxes work as revenue for…

Q: If the government increases alcohol taxation how will it affect consumption?

A: Taxes are the amount levied on goods which increases the price of good making the consumers to pay…

Q: Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the…

A: If a tax is imposed on the buyer of a product, the tax burden is shared by both buyers and sellers.…

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: Generally speaking, how do taxes affect markets? What affect does legal incidence have on…

A: Taxes is the mostly government  as their major source of income.Simply put, they are a tax or fee…

Q: Suppose that the government imposes a per-unit tax on cell phones. The tax is imposed on producers…

A: ‘Tax burden’ is also known as ‘tax incidence’. It indicates the division of tax between buyers &…

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: The graph shows the demand and supply of bungee jumps in Xtremeland. The government decides to…

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

Q: What are pros and cons to increasing the gasoline tax?

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: Give an example for the Average Tax Rates?

A: Average tax rate is the tax paid as a percentage of total income. The average tax rate can be…

Q: Why does the government ass excise taxes to certain products?

A: In a market, government intervenes in different ways by providing subsidies or imposing taxes.

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: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in…

Q: If the government imposes a tax of 8% on luxury cars that the consumer must pay, why does the…

A: The tax is shared by the consumer and producer based on the elasticity of the demand and supply. If…

Q: What are the principles of Tax-incidence?

A: Taxes are described as mandatory fees collected from citizens by the government. These taxes are the…

Q: compliance

A: Taxes are the primary source of revenue for governments around the world. They are used to fund a…

Q: What is the best policy to implement with regard to taxes?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What are the cannons of taxation by Adam smith ?

A: Adam Smith suggested taxation to finance government activities. He has led down some rules for the…

Q: How can tax incidences have a positive and negative impact on the economy?

A: Tax incidence refers to the burden of a particular tax that is imposed by the government.

Q: Does a tax on buyers affect the demand curve?

A: The demand curve shows the negative relationship between price of the goods and its quantity…

Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then…

A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer…

Q: What is Proportional Tax?

A: Taxes- proportional, progressive and regressive. Proportional taxes are flat taxes (as %) which are…

Q: . What happens when government imposes a tax of 60 cents per gallon on buyers?

A: When economic pressures are already in proportion, there is said to be an economic equilibrium.In…