Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes

Question:

Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes do not result in substitution effects, but they do affect prices. Is this a contradiction?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

See More Books

Question Posted: Aug 15, 2023 02:37 PM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Wallace and Brace CPA assign a partner to screen and recommend (or decline) potential clients prior to acceptance. Discuss at least 4 specific issues which should have been considered prior to...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
2. Consider two households, one with an income twice as large as the other. Both households pay the equivalent of 5% of their income to consume free (public) education to the quantity PS (where PS...
An article in The Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the...
RH understands that a consumption decision can be influenced by the way a product looks but also by how customers might use the product. This perspective is known as __________. a. touchpoint...
Provide a two-dimensional scatter plot, using variables of your choice, with an overlay of cluster membership. Choose variables that result in an interesting plot. Note where the cluster boundaries...
1. What are the benefits that result from implementing the technologies described in the case? How are those different for hospitals, doctors, insurance companies and patients? Provide examples of...
Assume a merchandising companys estimated sales for January, February, and March are $103,000, $123,000, and $113,000, respectively. Its cost of goods sold is always 60% of its sales. The company...
Suppose 90 percent of the net federal debt was acquired by foreign investors. How would this affect the burden of the debt for U.S. citizens?
Explain the benefit principle for selecting a method of taxation. Is the benefit principle more likely to be followed if a tax structure is regressive, proportional, or progressive? Create an example...
Each student should write an estimate of the age of the current president of the United States. All estimates should be collected, and the sample mean and standard deviation should be calculated....
Indicate whether each of the following types of transactions will either (a) increase stockholders' equity or (b) decrease stockholders' equity: 1. expenses 2. revenues 3. stockholders' investments...
The following selected transactions were completed by Lindbergh Delivery Service during October: 1. Received cash from issuing capital stock, $$75,000$. 2. Paid rent for October, $$4,200$. 3....
Murray Kiser operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction...
A. Given that y = e 2x + 1 complete the table of values of y corresponding to x = 0.5, 1 and 1.5. B. Use the trapezium rule, with all the values of y in the completed table, to obtain an estimate for...
Draw a schematic using NFETs and PFETs for a restoring logic gate that implements the function = 0 if zero or two of inputs cba are true. Assume that all inputs and their complements are available.
If a 135-mm telephoto lens is designed to cover object distances from 1.30 m to , over what distance must the lens move relative to the plane of the sensor or film?
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85? Select one: O a. $325 O b. $5,500 O c. $2,750 O d. $1,175
Joel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatees sales have increased significantly over the last several years, Joel has determined that the corporation needs a...
White Corporation, a calendar year C corporation, manufactures plumbing fixtures. For the current year, White has taxable income [before the domestic production activities deduction (DPAD)] of...
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 720,000 Dividends received from...
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...

Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes

Question:

Step by Step Answer:

Lumpsum taxes are unique in that they do not cause any efficiency losses and they are not associated with substitution effects This makes them an idea...View the full answer

Public Finance A Contemporary Application Of Theory To Policy

Students also viewed these Business questions