Suppose the government established a new program that would use revenues from a payroll tax to finance

Question:

Suppose the government established a new program that would use revenues from a payroll tax to finance 85 percent of the maintenance and repair cost of automobiles incurred by those who are employed. How would this legislation influence.

(a). The prices of auto repair and maintenance services,

(b). Total spending on these services,

(c). The cost of this program in the years immediately ahead? Do you think this program should be adopted? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Private And Public Choice

ISBN: 9780357133996

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

See More Books

Question Posted: Oct 17, 2023 10:00 AM

See More Questions

In January, the board of directors of the Montgomery Corporation, one of Canada's largest retail store chains, was having its regularly scheduled meeting to establish and declare the next quarterly...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Consider the generalized externality problem. Assume the damage and cost functions are given by: (a) Determine the non-regulated level of E if the polluter has the right to pollute. (b) Determine the...
The auditor's audit files usually can be provided to someone else only with the permission of the client. Give three exceptions to this general rule.
Consider an ER diagram given below for Bank database. CODE BANK NAME mesters BRANCHES 15 MOVIE ADDRES Which is the correct statement regarding the above diagram (a) Bank-Branch is the weak entity (b)...
The force P applied at joint D of the square frame causes the frame to sway and form the dashed rhombus. Determine the average normal strain developed in wire AE. Assume the three rods are rigid....
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of...
The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell...
The government now requires insurers to provide insurance to persons with preexisting adverse health conditions. How does this influence the incentive to purchase insurance when you are healthy?
Do personal choices influence health care expenditures? If health care is paid for by others or if everyone is charged the same premium for health care, how will this influence the incentive to make...
Myers Company provides you with the following condensed balance sheet information. For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets, (2)...
Is the claim made in this VoxEU column by Galor and Mountford (2008) in harmony with the notion of an "endogenous fertility transition" in the UK? Explain. Galor, Oded, and Andrew Mountford (2008),...
Search for and share in the discussion a link to any relevant reading/s you find on government actions that lead to constraints and how this affects the African economy. Required: Paste the links of...
Kelso Corporation is considering leasing a new equipment. The lease lasts for 8 years. The lease calls for 8 payments of $208,000 per year with the first payment occurring immediately. The equipment...
Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash...
Analyze the components of an effective email subject line. What are the best practices for crafting subject lines that grab attention and accurately reflect the content of the email?
XTremely Fast Service Inc. is a call center with several business units. One of its business units, Fabulous 4, currently staffs four operators who work eight hours per day Monday through Friday....
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
What do Keynesians think cause fluctuations in output? What must be done to maintain full-employment capacity?
What determines the equilibrium rate of output in the Keynesian model? Why did Keynes think the Great Depression lasted so long and the unemployment rate remained so high throughout the 1930s?
(a) Housing prices rose sharply between 2002 and midyear 2006. Use the ADAS model to illustrate the impact of the housing price increases on output and employment. (b) During 2007 and 2008, housing...
Suppose there is an informed investor whose portfolio has a beta of 1.4 and an expected return of 16%. The market has an expected return of 10% and the risk-free rate is 4% (note: this means the...
Given the following program in a C-like syntax, assume that you assign the last 2 digits of your student number into the variable myStudentIDLast2Digits. myStudentIDLast2Digits = int m = myStudent...
How should I verify a cobb-douglas function f(x, y, z) = x^0.5y^0.4z^0.2 is a quasi-concave function but not concave function when apply the calculus criteria to Hessian matrix and the bordered...

Suppose the government established a new program that would use revenues from a payroll tax to finance

Question:

Step by Step Answer:

a The prices of auto repair and maintenance services would likely increase as a result of this legis...View the full answer

Economics Private And Public Choice

Students also viewed these Business questions