Author Question: Value added taxes _____. a. have the same tax base as a consumption tax b. have the same tax ... (Read 54 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?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

For a complete list of videos, visit our video library