Question: Indicate whether you agree with the following statement and give
Indicate whether you agree with the following statement, and give your reasons for doing so: "If the beltline surrounding the city of Raleigh were a pure public good, efficiency would require that the price to use the road be zero. However, during rush hour congestion, the road cannot be regarded as a pure public good and a toll should be charged for its use." If an automated vehicle identification system (AVI) were established for residents of the metropolitan area around Raleigh who use the beltline, how would you set tolls to achieve efficient use of the road? The AVI system would allow you to send a bill to each user of the road each month based on miles traveled on the road and the price you charge, which could vary by time of day.
Answer to relevant QuestionsIndicate how each of the following could impact tax evasion and explain why the effect takes place: a. An increase in MTRs. b. A decrease in MTRs. c. An increase in the complexity of the tax code. d. An increase in the ...Suppose the supply of housing construction is infinitely elastic at a price of $150 per square foot. Currently 1 million square feet are built per month. If the price elasticity of demand for housing is 1, calculate the ...Suppose the current market rate of interest is 8 percent. John is subject to a 31 percent marginal tax rate on his interest income. What is John's equilibrium marginal rate of time preference? Suppose the marginal tax rate ...A corporation has $7 million in equity. During the tax year it takes in $4 million in receipts and earns $2 million in capital gains from sale of a subsidiary. It incurs labor costs of $1 million, interest costs of $250,000, ...Suppose the current corporate income tax in the United States is replaced with a general equal-yield consumption-type VAT. What would the impact of such a tax reform be for labor markets and capital markets? What is the ...
Post your question