Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference.
Question:
Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference.
Prepare a paper addressing the following:
• Explain why equilibrium of supply and demand is desirable.
• Explain the following concepts using the concept of consumer and producer surplus:
• Efficiency of markets -Costs of taxation -Benefits of international trade
• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles?
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright