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In 1990, the U.9. Congress imposed an excise tax on yachts built in the U.S. and other high-priced luxury products such as jewelry and fur coats with a price over $100,000. Thejoint Congressional Committee on Taxation predicted that these so- called "luxury taxes" would raise more than $30 million for the federal government in 1991. In fact, these taxes generated only about $10 million in revenue. Furthermore. about ?500 jobs in the U.S. boat-building industry were lost, so those workers paid less in income taxes. Putting this all together, the luxury tax led to a decrease of $? million in government revenue rather than the predicted $30 million increase. Why didn't the plan to raise government revenue by imposing an excise tax on luxury goods work as planned? Explain what mistake Congress made in setting the tax on luxury products.
Many economists believe there is a conflict between the economic goals of growth and equity. Do you agree or disagree? Provide your reasons.
Research the challenges associated with payments across international borders and prepare a brief presentation (Power point) or paper (Word doc)of your findings. Do most e-commerce companies conduct business internationally?
Suppose the economy were operating at full employment and firms become increasingly optimistic about the future. They increase their investment spending; graphically, that means that their investment schedule shifts to the right. (Draw a graph to exp..
Confirmed cases of food-borne illness can be devastating to the reputation of a foodservice operation. How can a restaurant manager's inventory control and prod
Why do sale of used goods do not add to income of a country in a particular year? If you think of income as the inflow in your bank account. All outflows are just expenditures. So I think of income as how much stuff can someone buy in a particulate y..
Calculate the percentage rate of exchange rate devaluation.
Suppose that the price of beer rose by 7.8%, the price of pizza rose by 1.2%, and the price of chocolate did not rise at all. Also, suppose that beer represents 46 percent of the economy and pizza represents 42 percent. Chocolate is the rest of the e..
Define the equilibrium for this environment. Solve for the equilibrium you defined in part. Perform a cost benefit analysis for the project defined in part.
Assume that you own 50,000 acres of land and that you grow wheat. With continued applications of fertilizer
Comment on whether the proposed program has any signaling value. Are there any other reasons for students to do these sorts of units?
Assume you have $10 to spend on either apples or chocolate. The price of a pound of apples is $3/pound and the price of chocolate is $5/pound. Graph the consumption possibilities curve. What is the opportunity cost of the 1st pound of chocolate? What..
A project is being considered that will cost $17,000. Expected returns are $3000 at the end of years 1 and 2, and $X at the end of years 3 and 4, $3000 at the ends of years 5 and 6, $X at the end of years 7 and 8, with this pattern repeating itself f..
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