Author Question: Value added taxes _____. a. have the same tax base as a consumption tax b. have the same tax ... (Read 58 times)

tatyanajohnson

  • Hero Member
  • *****
  • Posts: 569
Value added taxes _____.
 
  a. have the same tax base as a consumption tax
  b. have the same tax base as an estate tax
  c. have the same tax base as a retail sales tax
   d. have the same tax bas as an income tax

Question 2

Employing a general equilibrium approach, describe the effect of a new law that prohibits steel imports.
 
  What will be an ideal response?



Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

c

Answer to Question 2

The initial effect is that the supply curve for steel shifts leftward. This raises the price of steel. The largest users of steel are the automobile industry, the construction industry, and the appliance industry. The increased cost of inputs will raise the price of the goods produced by these industries. Given time, these industries will look to substitute plastic or aluminum in place of steel, raising the prices of these materials.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

For a complete list of videos, visit our video library