Why might revenues generated from the tax fall short of expectations?   2. Do you think that Philadelphia should or shouldn't have adopted the tax to fund pre-K education?  Support your brief argument with economic concepts covered in the course.   3. Suppose a government wants to use tax policy to persuade people to not consume certain products or services. Suppose, the government has limited resources and can only enforce (or collect) a limited number of taxes. Should that government target goods or services that have an elastic or inelastic price elasticity of demand (ED)? Why?   4. Suppose the goal of a government is to raise as much money as possible to fund governmental services. Should the government target goods and services that have an inelastic or elastic ED? Why?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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. Why might revenues generated from the tax fall short of expectations?

 

2. Do you think that Philadelphia should or shouldn't have adopted the tax to fund pre-K education?  Support your brief argument with economic concepts covered in the course.

 

3. Suppose a government wants to use tax policy to persuade people to not consume certain products or services. Suppose, the government has limited resources and can only enforce (or collect) a limited number of taxes. Should that government target goods or services that have an elastic or inelastic price elasticity of demand (ED)? Why?

 

4. Suppose the goal of a government is to raise as much money as possible to fund governmental services. Should the government target goods and services that have an inelastic or elastic ED? Why?

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