03 Jun Question Microeconomics of Government: Discussions: Identify a particular tax of your
Question
Microeconomics of Government:
Discussions: Identify a particular tax of your choosing. Then, concisely defend your view on whether that tax meets Adam Smith’s criteria of a “good tax” and whether it is both efficient and equitable. Give positive reasons based on the microeconomics of product and resource markets, and the inevitable efficiency and equity implications that we have studied for your normative conclusion. Post your chosen tax and your defense in the Discussions area. Read and respond to your fellow students’ postings at will.
Dropbox Assignments: After your readings in the text, upload to the Week 8 Dropbox your answers to the following exercises:
Using your understanding of tax incidence from the interactive graph 16.1 as well as the content of chapter 15, explain why some states do not charge sales tax for basic foods. In the event the online graph is not viewable, the graph in Figure 16.7 on page 347 is identical and can be used in lieu of the online graph.
Explain how the elasticity of demand influences tax revenues?
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