When the government imposes taxes on buyers or sellers of agood, society a is better off because the governments tax revenues exceed thedeadweight loss b gains efficiency but loses equality c moves from an elastic supply curve to an inelastic supplycurve d loses some of the benefits of market efficiency

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Dec 13, 2022

When the government imposes taxes on buyers or sellers of agood, society a. is better off because the governments tax revenues exceed thedeadweight loss. b.

When the government imposes taxes on buyers or sellers of agood, society

	a.	is better off because the government’s tax revenues exceed thedeadweight loss.
	b.	gains efficiency but loses equality.
	c.	moves from an elastic supply curve to an inelastic supplycurve.
	d.	loses some of the benefits of market efficiency.

Step by Step Solution

★★★★★

3.38 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Taxes distort the price signal of the market reducing the efficiency ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

More Books

Students also viewed these Economics questions

Question

★★★★★

Why does a market clear when the government imposes an excise tax of $T per unit?

Answered: 1 week ago

Question

★★★★★

Multiple Choice Questions 1. When the government imposes a binding price floor, it causes a. The supply curve to shift to the left. b. The demand curve to shift to the right. c. A shortage of the...

Answered: 1 week ago

Question

★★★★★

An operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit the operating loss to be used to reduce taxable income in other, profitable years by either a carryback...

Answered: 1 week ago

Question

★★★★★

(a) Decide whether each of the following expressions are true or not. Answer yes or no. In any case where it is not true, provide the actual O-complexity. (i) log n = O(n!) (ii) 10! = O(log n) (iii)...

Answered: 1 week ago

Question

★★★★★

Refer to Hang Ten in E7- 40B. If Hang Ten can decrease its variable costs to $ 0.60 per package by increasing its fixed costs to $ 95,000, how many packages will it have to sell to generate $ 25,000...

Answered: 1 week ago

Question

★★★★★

For H2O use HF/6-31G* to optimize the geometry and then calculate the ESP charges according to each of the methods Merz-Singh-Kollman, CHELP, and CHELPG, To do this in Gaussian, in addition to Opt on...

Answered: 1 week ago

Question

★★★★★

In a water supply network, depicted below, the water is transferred from point A to point F through water tubes. At the positions marked with the numbers 1, 2, 3, and 4 on the graph, there are four...

Answered: 1 week ago

Question

★★★★★

Logan Company manufactures several toy products. One is a large plastic truck, which requires a plastic truck body, two metal axles, and four rubber wheels. Logan currently manufactures and assembles...

Answered: 1 week ago

Question

★★★★★

Showing all work in excel: Calculating Annuity Values. If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent interest, how much money will you have in the...

Answered: 1 week ago

Question

★★★★★

Diane Bernick has opened Bernicks Consulting. Journalize the following transactions that occurred during January of the current year. Use the following journal pages: January 110, page 1, and January...

Answered: 1 week ago

Question

★★★★★

The company rents some of the premises where it has its warehouses located. The rent requires payments at the end of each month (ordinary annuity). At the end of the year, the rent for the month of...

Answered: 1 week ago

Question

★★★★★

The average retirement age in America is 64 years old. Do small business owners retire at an older average age? The data below shows the results of a survey of small business owners who have recently...

Answered: 1 week ago

Question

★★★★★

The average accident on a certain road section is at 2.4 per day, what is the probability that there will be 12 accidents in a week? A bus company operates both a walk-in and online booking to...

Answered: 1 week ago

Question

★★★★★

Step 3: Analyze and document control plane logical configuration features. Analyze the configurations of the devices for control plane features such as routing protocols, First Hop Redundancy...

Answered: 1 week ago

Question

★★★★★

You have been given a program Lab01_P2.c that computes the prime factorization of a hardcoded integer value. This program does not work in its current state: it has 1 syntax error (this will cause...

Answered: 1 week ago

Question

★★★★★

One of the principal roles of the system architect is to Choose the best answer below: Provide objective evidence that specified requirements have been fulfilled by system elements and integrated...

Answered: 1 week ago

Question

★★★★★

Questions regarding Citibank: Performance Evaluation Case Study Think of Citibanks new strategy (customer service and relationship banking). What were the limitations of the previous performance...

Answered: 1 week ago

Question

★★★★★

Use translations to graph f. f(x) = x-/2 +1

Answered: 1 week ago

Question

★★★★★

Efficiency Wages and the Threat of Firing Workers: In our treatment of labor demand earlier in the text, we assumed that firms could observe the marginal revenue product of workersand thus would hire...

Answered: 1 week ago

Question

★★★★★

Consider a simultaneous game in which both players choose between the actions Cooperate, denoted by C, and Defect, denoted by D. A: Suppose that the payoffs in the game are as follows: If both...

Answered: 1 week ago

Question

★★★★★

Capital Gains Taxes: Taxes on capital g0ains are applied to income earned on investments that return a profit or capital gain and not on income derived from labor. To the extent that such capital...

Answered: 1 week ago

Question

★★★★★

What amount must be invested today to provide for quarterly payments of $2500 at the end of every quarter for 15 years after a six-year deferral period? Assume that the funds will earn 5% compounded...

Answered: 1 week ago

Question

★★★★★

An investor purchased a deferred annuity contract for $4608.07, a price calculated to provide a rate of return on investment of 9.75% compounded monthly. The semiannual payments of $400, once...

Answered: 1 week ago

Question

★★★★★

Duncan retired recently and plans to utilize other savings for a few years while his RRSP continues to grow on a tax-deferred basis. The RRSP is currently worth $142,470. How long will it be until...

Answered: 1 week ago

Previous Question Next Question