Tax be the most efficient

Assignment Help Business Economics

Reference no: EM138717

Q1. Suppose that, in Case B in table 2.5, the United States exchanges 4W for 4C with the United Kingdom.

(A) In the terms of C, how much does the United States gain?

(B) In the terms of C, how much does the United Kingdom gain?

(D) How much would each nation gain in terms of C if they exchanged 4W for 6C instead?

Q2. Consider three products: all types of food, all dairy products, and 2% milk. If a tax were to be imposed on one of these items, for which item would the tax be the most efficient (minimizing deadweight loss and maximizing tax revenues)? Use the concept of elasticity in explaining your answer.

Reference no: EM138717

Questions Cloud

What is the magnitude of the average velocity of car : A car moves from a point located 26.0 m from the origin and at an angle of 35.0 from the x-axis to the point located 57.0 m from the origin and at an angle of 60.0 from the x-axis in 2.52 s.

What is the minimum current in the rod : When a potential difference of 166 V is applied to the plates of a parallel-plate capacitor, the plates carry a surface charge density of 32.0 nC/cm2. What is the spacing between plates.

Marginal cost of pollution control : At this level of pollution, what is the marginal cost of pollution control.

Calculate the tax incidence : Calculate the tax incidence of the buyers and the monopolist.

Tax be the most efficient : If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.

Unfavorable to the trade partner : In what sense can this be said to be unfavorable to the trade partner. Does this mean that the welfare of the trade partner has definitely declined.

Punish beta with a retaliatory price cut : Can Alpha make a credible threat to punish Beta with a retaliatory price cut

After-tax cash flow from selling it : If Jones sells the equipment today for $180,000 and its tax rate is 35%, what is the after-tax cash flow from selling it.

Estimated demand function : Starting with the estimated demand function for Chevrolets given in problem suppose the average value of the independent variables

User Account

All Pages