This topic contains a solution. Click here to go to the answer

Author Question: In order to survive in political office, politicians must be steadfast in their convictions and be ... (Read 77 times)

lbcchick

  • Hero Member
  • *****
  • Posts: 550
In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms.
 
  a. True b. False

Question 2

Consider a situation where a government is deciding between two different taxes on beer. The first tax is 2.88 per case and the second is a tax of one cent per ounce placed on beer. Both are paid by the supplier.
 
  Assume both will raise the same amount of revenue this period. Pretend you are an advisor to the government and explain to them which tax they should enact.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

leeeep

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

b

Answer to Question 2

After carefully considering the two taxes, in my opinion this government should adopt the ad valorem tax, i.e., the tax of one cent per ounce of beer. The primary reason I argue in favor of the ad valorem tax is that the ad valorem tax will change in response to change in price. Thus if prices rise in the future the tax will not need to be changed in order to keep up with inflation. In addition, the unit tax on a case of beer could be more distortionary than the ad valorem tax because producers have an incentive to increase the number of cans in a case (if possible) or the number of ounces in each can in a case.




lbcchick

  • Member
  • Posts: 550
Reply 2 on: Jul 1, 2018
:D TYSM


tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

For a complete list of videos, visit our video library