Comment the statement regarding federal government tax.

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Answer 1

Question

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

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3. Consider the market for paper. The process of producing paper creates pollution. Assume that the marginal damage function for pollution is given by: MDF = 3E where damages are measured in dollars and E is the level of emissions. Assume further that the function describing the marginal abatement cost of emissions is given by MAC 120-E where benefits are measured in dollars and E is the level of emissions. a. Graph the marginal damage function (MDF) and the marginal abatement cost function (MAC). b. What is the unregulated level of emissions Eu? What is the social welfare of this emissions level? c. Assume an existing emission quota limits emissions to E = 60. Show on the graph why this policy is inefficient. What is the deadweight loss caused by this policy?

show written calculation for B

Problem 1: 1. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%? 2. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? 3. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?

Answer 2

Question

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

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Answer 3

Question

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

Answer 6

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.

Answer 7

Chapter 17, Problem 1DQ

To determine

Comment the statement regarding federal government tax.

Answer 8

Expert Solution & Answer

Explanation of Solution

The tax as a percentage of GDP is shown in the figure below:

Economics: Principles & Policy, Chapter 17, Problem 1DQ

The federal government tax increases according to the proportion of national income of the country. According to figure 1, the ratio of taxes to the percentage of GDP was constant for around 50 years. While comparing with the industrialized countries, the taxation level in the country is low. Thus, there is no evidence to prove that the existing tax rates will ruin the economy.