Suppose that you observe that the wages for accountants in your town have gone up and that the number of accountants employed has also gone up. Which one of the following conditions could explain this? Illustrate your answer with a graph and explain in a brief paragraph. a. Businesses are failing, reducing the need for […]
You can access the World Bank’s World Development Indicators database online to download income share data for various countries, and construct Lorenz curves. Choose two countries you are interested in and construct their Lorenz curves on the same graph. Note that the WDI database does not have data for all countries, or for the most […]
For each of the taxes below, indicate whether you think the tax burden will be borne primarily by consumers or producers. Also, how successful do you think each tax will be in raising revenues? a. A city tax on the use of paper bags in supermarkets. Consumers have the option of asking for plastic bags […]
Suppose that gasoline is not currently taxed in the country of Autopia, and the price of gasoline is $3.00 a gallon. In order to alleviate problems with air pollution and traffic, the government of Autopia decides to institute a $0.50 a gallon tax on gasoline. After the tax, the price of gasoline rises to $3.45 […]
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