A new tax is levied on airline profits to finance improvements in the nation's airports. The current market rate of interest is 8 percent. However, airline profits are subject to a 50 percent tax. A cost-benefit analysis calculates the percent return to the investment in new air facilities to be 12 percent. Will net benefits from resource use increase as a result of construction of new air travel facilities?
Answer to relevant QuestionsA cost-benefit analysis of a new irrigation project indicates that the net benefits (B C) of the project in each of the first four years will be $2 million. Thereafter, the project will yield positive net benefits of ...A proposal for a negative income tax is designed to provide an income guarantee for each person, irrespective of his age or status, of $3,000 per year. Thus, a family of four would have an income guarantee of $12,000 per ...The graph on the next page shows the supply and demand for health care in the nation. The demand curve reflects the marginal social benefit of health care while the supply curve reflects the marginal social cost. a. What is ...The annual demand for liquor in a certain state is given by the following equation: QD = 500,000 – 20,000P Where P is the price per gallon and QD is quantity of gallons demanded per year. The supply of liquor is given by ...Mary has earnings of $50,000 this year. She also has been fortunate because the market value of the condominium she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate of inflation is 3 ...
Post your question