(a) Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

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Answer 1

Question

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

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3. Answer the following questions about external wealth. a. Home has external wealth of $100 million in period t. In t+1, Home purchases $160 million foreign assets, and Foreign purchases $120 million in Home assets. Assume a world interest rate of 10% per annum. Compute the "change" in external wealth at t+1 for Home. b. A country's external wealth was -$1.5 billion at the end of 2015, and its trade balance was $750 million in 2016. Assume the world interest rate is 5% per annum. What is the "value" of a country's external wealth at the end of 2016?

1. The table below shows a country's hypothetical national income and product accounts data. Category Consumption (personal consumption expenditures) Investment (gross private domestic investment) Government consumption (government expenditures) Exports Imports Net Factor Income from Abroad Net unilateral transfers Billions of Dollars 8,000 1,300 2,100 900 1,750 +45 -20 a. Compute the following accounts using the information in the table: Gross national expenditure (GNE) . Trade balance (TB) • Gross domestic product (GDP) • Gross national income (GNI) . Gross national disposable income (GNDI) Current account (CA) b. Derive the current account identity using the national income identity. Are savings greater than or smaller than investment in this country? The national income identity is: GNDIGNE + CA, GNE = C + G + I.

4. Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. Consumption C is 50 every year, and I = G = 0. There is an unexpected drop in output in year 0, so output falls to 28 and is then expected to return to 50 in every future year. If the country desires to smooth consumption, how much should it borrow in period 0? What will the new level of consumption be from then on?

Answer 2

Question

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Answer 6

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

Answer 7

Chapter 7, Problem 6P

To determine

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

Answer 8

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

Answer 9

To determine

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

Answer 10

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

Answer 11

To determine

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

Answer 12

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

Answer 13

To determine

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

Answer 14

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Answer 15

(e)

To determine

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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 Ch. 7 - Prob. 8P Ch. 7 - Prob. 9P Ch. 7 - Prob. 10P

(a) Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

Solution Summary: The author explains that tax revenue is collected from various sources like income, profits, goods and services, transfer of property, and other taxes. Taxing on alcohol is a good revenue source.

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Want to see the full answer?

Chapter 7 Solutions

(a) Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

Solution Summary: The author explains that tax revenue is collected from various sources like income, profits, goods and services, transfer of property, and other taxes. Taxing on alcohol is a good revenue source.

(a) Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

(b) Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

(c) Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

(d) Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.

Whether the grapefruit juice is the good market to tax or not if the motive is to raise the tax revenue.

Want to see the full answer?

Chapter 7 Solutions

(a)

Whether the luxury yachts is the good market to tax or not if the motive is to raise the tax revenue.

(b)

Whether the alcohol is the good market to tax or not if the motive is to raise the tax revenue.

(c)

Whether the movies is the good market to tax or not if the motive is to raise the tax revenue.

(d)

Whether the gasoline is the good market to tax or not if the motive is to raise the tax revenue.