Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 9PA
Sub part (a):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
Sub part (b):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
Sub part (c):
To determine
The categorization of the given scenarios under benefit principle and ability to pay principle.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Mr. Saeed Ahmed loves watching sports channel on his local public TV station, but he never sends any money to support the station during its fund-raising drives.
What name do economists have for people like Mr. Saeed Ahmed?
b. How can the government solve the problem caused by people like Mr. Saeed Ahmed?
c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?
If the production of computer chips yields greater
technology spillovers than the production of potato
chips, the government should
Select one:
a.
discourage the production of computer
chips with taxes.
b. discourage the production of potato chips
with taxes.
c. encourage the production of potato chips
with subsidies.
d. encourage the production of computer
Ichips with subsidies.
Which of the following is an example of an exemption?
A. people paying less on their taxes because they take care of childrenB. profits earned after costs are subtracted from total earningsC. amount of money used to pay for maintaining national parksD. money paid by corporations
Chapter 12 Solutions
Principles of Microeconomics
Knowledge Booster
Similar questions
- Categorize each of the following funding schemes asexamples of the benefits principle or the ability-topay principle.a. Visitors to many national parks pay an entrancefee.b. Local property taxes support elementary andsecondary schools.c. An airport trust fund collects a tax on each planeticket sold and uses the money to improve airportsand the air traffic control system.arrow_forwardGovernments may not have the incentive to correct a market failure because Kerajaan mungkin tidak berinsentif untuk membetulkan kegagalan pasaran kerana. a. the benefits are greater than costs of correcting the market failure faedahnya lebih besar daripada kos membetulkan kegagalan pasaran b. governments may miscalculate the tax rate to be applied kerajaan mungkin tersilap dalam pengiraan kadar cukai yang akan dikenakan c. governments rarely have the information required to correct the market failure kerajaan jarang mempunyai maklumat yang diperlukan untuk membetulkan kegagalan pasaran d. governments normally involve political decisions, which are reflected by individual interest to gain more for themselvesarrow_forwardThe south African government develops targets that pertain to healthcare and education. Which of the following statements explains why government provides these two goods? A. The benefit to society of healthcare and education is extremely low. B. The benefits that society receives from health care and education exceed those that accrue to an individual user. C . The government spends money on health care and education because they are public goods D. Health care and education only produce negative externalities.arrow_forward
- Which of the following is NOT a reason that governments impose taxes? To finance government spending To influence the behavior of households and firms To alter the distribution of income in society These are all reasons why governments impose taxesarrow_forwardBriefly define each of the following concepts.a. An in medias res cost-benefit analysis.b. The marginal excess tax burden.c. Allocative efficiency.d. A positive externality in production.e. A shadow price.arrow_forwardWhich one of the following is a definition of a merit good? A) Services which can only be provided by the government through taxesB) Goods which provide cear social and private benefits to consumersC) A good which can be produced by the market but would likely be under-consumedD) Goods which are beneficial in consumption but consumers are unaware of the extent of the benefitsE) Goods which are not capable of being provided by the market because they are excludable and rival Merit goods are an example of which of the following problems in economics:A) Free riderB) Principal-agentC) Tragedy of the CommonsD) Intertemporal choiceE) Excludable, non-rival goods provision De-merit goods have characteristics that if left the market mechanism, they are over consumed and impose private costs on the individual consume them, and also have wider social costs. Which of the following ways in which a government might seek to reduce consumption of of merit costs? Check all the apply A) Impose…arrow_forward
- There is equilibrium in the relevant market. The economic effects of taxes can be analysed using method of supply and demand. (Start with equilibrium in the relevant market. Identify who must pay the tax. Find the new equilibrium. Determine the economic incidence of the tax.). Use graphs!arrow_forwardWhat is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels? a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market. b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market. c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market. d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.arrow_forwardAnswer in step by step with explanation. Don't use Ai and chatgpt. Answer in all options with explanationarrow_forward
- Evaluate the following two statements. Do you agree? Why or why not? a. “If the government taxes land, wealthy landowners will pass the tax on to their poorer renters.” b. “If the government taxes apartment buildings, wealthy landlords will pass the tax on to their poorer renters.”arrow_forwardWhat is a market-failure rationale for the government investing in education and training programs? a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets. b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets. c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets. d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.arrow_forward“The Prime Minister claims that funding the increase in NHS and social care spending by national insurance [paying higher NICs] is preferable, because firms pay part of the cost. This is a fiction. In the long run the burden of payroll taxes, even those paid by companies, falls on workers, whose wages fall as their employers’ tax bills rise.” The Economist 11-09-202. Is “The Economist” right in its counter-claim? (Hint: use a market equilibrium model of demand and supply for labour)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co