a. To explain: A tax on gasoline that finances maintenance of state roads. Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes. According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which of the following graphs best represents the production possibility frontier of Country Y (Line Y), the production possibility frontier of Country Z (Line Z), and the production possibility frontier of this whole economy (Line W)? (Hint: Find W by adding the productive capabilities of Country Y and Z) Group of answer choices

Which of the following factors tend to decrease the wage differential between union and non union workers: unions tend to organize the firms with the lowest ability to pay initially all of the above unions must moderate their wage demand to keep workers competitive some nonunion employers pay their employees above union wages only ‘a’ and ‘b’ above

The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 8 MC ATC MR 30 D 45 50 Quantity/time The firm will maximize its profit at a quantity of units. After choosing the profit maximizing quantity, the firm will charge a price of The firm will receive $ in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is S The maximum profit the firm can earn in this situation is $ per unit for this output. How will the situation change over time? Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. ◇ Losses will induce firms to leave this market until the profit maximizing price falls to zero. The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. This market is already in long-run equilibrium, and will not…

Answer 2

Question

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Answer 6

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

Answer 7

Chapter 7, Problem 11P

To determine

a.

To explain:

A tax on gasoline that finances maintenance of state roads.

Introduction: Ability to pay tax is a progressive tax principle that is levied on the basis of ability to pay. According to this principle those who have more wealth, or earn higher incomes, should pay more taxes.

According to the benefit principle tax, the state should levy taxes on individuals according to the benefit conferred on them. The more benefits a person derives from the activities of the state, the more he should pay to the government.

Answer 8

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

Answer 9

To determine

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

Answer 10

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

Answer 11

To determine

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

Answer 12

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Answer 13

To determine

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 7 - Prob. 1BCQ Ch. 7 - Prob. 2BCQ Ch. 7 - Prob. 3BCQ Ch. 7 - Prob. 1P Ch. 7 - Prob. 2P Ch. 7 - Prob. 3P Ch. 7 - Prob. 4P Ch. 7 - Prob. 5P Ch. 7 - Prob. 6P Ch. 7 - Prob. 7P

b. To explain: An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

c. To explain: Airline-flight landing fees that pay for air traffic control.

d. To explain: A reduction in the amount of income tax paid based on the number of dependent children in the household.

Want to see the full answer?

Chapter 7 Solutions

b.

To explain:

An 8% tax on imported goods valued in excess of $800 per household brought in on passenger flights.

c.

To explain:

Airline-flight landing fees that pay for air traffic control.

d.

To explain:

A reduction in the amount of income tax paid based on the number of dependent children in the household.