Economics Today: The Micro View (19th Edition) (Pearson Series in Economics)
Economics Today: The Micro View (19th Edition) (Pearson Series in Economics)
19th Edition
ISBN: 9780134479255
Author: Roger LeRoy Miller
Publisher: PEARSON
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Chapter 5, Problem CFCT
To determine

Would a government find it easier or harder to raise funds for public good that all people value similarly if the government officials possess varying capabilities to provide?

Concept Introduction:

There are a large number of difficulties that are looked by local government in the 21st century for raising assets for giving public necessities, for example, delivering services; lack of finance; overseeing staff; drawing in natives; shaping new associations and quickly advancing innovations and financial socioeconomics.

Because of the absence of budgetary independence, undue nosiness of state governments in local undertakings, debasement among neighborhood government authorities, and so on it is prescribed that full monetary self-governance ought to be allowed nearby boards on issues statutorily appointed to them, the joint state-local government committees account framework ought to be annulled, and genuine and straightforward authorities ought to be put in charge of issues in the local government chambers to solidify the neighborhood government framework.

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3. Consider a single firm that manufactures chemicals and generates pollution through its emissions E. Researchers have estimated the MDF and MAC curves for the emissions to be the following: MDF = 4E and MAC = 125 – E Policymakers have decided to implement an emissions tax to control pollution. They are aware that a constant per-unit tax of $100 is an efficient policy. Yet they are also aware that this policy is not politically feasible because of the large tax burden it places on the firm. As a result, policymakers propose a two- part tax: a per unit tax of $75 for the first 15 units of emissions an increase in the per unit tax to $100 for all further units of emissions With an emissions tax, what is the general condition that determines how much pollution the regulated party will emit? What is the efficient level of emissions given the above MDF and MAC curves? What are the firm's total tax payments under the constant $100 per-unit tax? What is the firm's total cost of compliance…
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