Explain in detail the concept of excess burden

Assignment Help Business Economics

Reference no: EM13802490

Explain in detail the concept of excess burden (or welfare cost) and explain the factors significant in the calculation of the excess burden. What is the marginal excess burden and why is it important concept for policy evaluation?

Reference no: EM13802490

Questions Cloud

Bullets and numbers in documents : Using lists (bullets and numbers) in documents

Better life index as indicators of economic performance : Compare and contrast the merits of GNI, Net National Product, and Your Better Life Index as indicators of economic performance in Brazil, Russia, China, and India.

Obtained expected after-tax rate of return on this equipment : JET FAB bought a CNC laser cutting machine at a cost of $400,000 to meet the specific needs of customer that had given a 4-year contract with the possibility of extending the contract for another 4 years. Consequently, the company ended up selling th..

Presidential candidate has decided to enter primaries : A presidential candidate has decided to enter primaries in those states in which at least 20% of voters support her. Random samples of 200 voters were taken in each of a number of states. In New Hampshire, 33 voters supported the candidate. Test at a..

Explain in detail the concept of excess burden : Explain in detail the concept of excess burden (or welfare cost) and explain the factors significant in the calculation of the excess burden. What is the marginal excess burden and why is it important concept for policy evaluation?

What is your conclusion : In order to rule on a potential federal grant, a government official must confirm that the average income in a Pennsylvania county is less than $12,500. A sample of 35 individuals is taken and shows a sample mean of $10,950 and a sample standard devi..

Is the firm charging the optimal price for the product : Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, is it estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product?

What is a change in the interest rates on excess reserves : What is a change in the interest rates on excess reserves? And there should be an actual equation with the numbers plugged in.

What is rent seeking behavior : What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?

User Account

All Pages