Questions from Microeconomics

Q: What does tax incidence mean?

What does tax incidence mean?

Q: Briefly discuss the effect of price elasticity of supply and demand on

Briefly discuss the effect of price elasticity of supply and demand on tax incidence.

Q: According to the 2004 Economic Report of the President, “The

According to the 2004 Economic Report of the President, “The actual incidence of a tax may have little to do with the legal specification of its incidence.” Briefly explain what this statement means a...

Q: According to the 2004 Economic Report of the President, “Another

According to the 2004 Economic Report of the President, “Another crucial principle [of tax incidence] is that only people can pay taxes. Businesses and other artificial entities cannot pay taxes.” Do...

Q: According to an article in the New York Times, some New

According to an article in the New York Times, some New Yorkers were deciding to buy existing condominiums (condos) rather than newly constructed condos. One reason given was that “[some buyers] seek...

Q: Business historian John Steele Gordon noted in a Wall Street Journal column

Business historian John Steele Gordon noted in a Wall Street Journal column that the first federal corporate income tax was enacted in 1909, before passage of the Sixteenth Amendment made a federal in...

Q: According to an article in the New York Times, when the

According to an article in the New York Times, when the French government imposed a new tax on sales of beer, it estimated that the retail price of beer would rise by the equivalent of 6 cents per hal...

Q: Governments often have multiple objectives in imposing a tax. In each

Governments often have multiple objectives in imposing a tax. In each part of this question, use a demand and supply graph to illustrate your answer. a. If the government wants to minimize the excess...

Q: A columnist in the New York Times notes that the U.

A columnist in the New York Times notes that the U.S. labor supply “in the next decade is expected to expand at less than half the pace of the 1960s, 1970s and 1980s.” What explains these changing gro...

Q: Which of the following are examples of a firm experiencing positive technological

Which of the following are examples of a firm experiencing positive technological change? a. A fall in the wages it pays its mechanics leads United Airlines to lower its ticket prices. b. A training p...