Explain the process of investigation of a feasible product
Assignment:
Explain the first three (3) steps involved in the process of investigation of a feasible product.
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Drawing on the idea of economic incidence and administrative cost, explain why this tax may not benefit consumers after all.
Now, suppose that food and children's clothing are exempted from the sales tax. Is this likely to make the tax more or less regressive?
What is the expected selling price of the property? Interpret your result.
With reference to the price and quantity effects, why all else equal, taxing several goods at a modest rate is better than taxing one good at a very high rate.
Explain what assumptions they must be making in order to justify their different positions, in terms of price and quantity effects.
A local government is considering ways to raise taxes to pay for making. Explain why, despite its apparent fairness, this tax is likely very inefficient.
Which would you expect to be less efficient, a flat tax on all income or a property tax (charged based on the assessed value of real estate)?
Using this fact, explain to what extent you think a tax on cigarettes would fulfill each of the goals of taxation.
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