Question: On a recent visit to Amsterdam you noticed that houses
On a recent visit to Amsterdam, you noticed that houses facing the canals are tall, deep, and extremely narrow. Your host tells you that this is due to builders’ desires to avoid taxes. Describe a tax system that would induce this kind of behavior.
Answer to relevant QuestionsSuppose that the government of Michconsin imposes a tax on cheese curd production. When will the efficiency costs of the tax be greater, in the short run or in the long run—and why? Consider a social insurance program that is financed by a payroll tax. How does the incidence of this tax differ if the benefits of the insurance program are restricted to workers, rather than if benefits are available to ...Suppose that a state mandates that both women and men be provided family leave by their employers following the birth of a child. a. How would you empirically test how this policy change affected the relative wages of men ...Suppose that you can earn $16 per hour before taxes and can work up to 80 hours per week. Consider two income tax rates, 10% and 20%. a. On the same diagram, draw the two weekly consumption–leisure budget constraints ...Suppose that the government increases its tax rate on interest earned. Afterward, savings increase. Which effect dominates, the income effect or the substitution effect? Explain.
Post your question