_ 1. A price floor will be binding only if it is set
a. equal to the equilibrium price.
b. above the equilibrium price.
c. below the equilibrium price.
d. either above or below the equilibrium price.
_ 2. After a binding price floor becomes effective, a
_ 1. The price that buyers pay after the tax is imposed is
_ 2. The effective price that sellers receive after the tax is imposed is
_ 1. Price controls are usually enacted
a. as a means of raising revenue for public purposes.
b. when policymakers believe that the market price of a good or service
is unfair to buyers or sellers.
c. when policymakers detect inefficiencies in a market.
Corporate tax or company tax refers to a tax imposed on entities that are taxed at the entity level
in a particular jurisdiction. Such taxes may include income or other taxes. The tax systems of
most countries impose an income tax at the entity level on c
Wayne State University - Department of Communication
Communication 3300: Business and Professional Presentations
1Syllabus Winter 2015
INSTRUCTOR CONTACT INFORMATION
Instructor: Theresa Ceccarelli
CRN 21804 Sec 904
Meets 0322 Oakland, 9:35am-12:20pm
D after tax
90 100 110 120 130
_ 1. The per-unit burden of the tax is
$4 for buyers and $6 for sellers.
$5 for buyers and $5 for sellers.
$6 for buyers and $4 for sellers.
Can decide whether a tax comes from the buyers pocket or
from the sellers
Cannot legislate the true burden of a tax
Determined by the forces of supply and demand
Elasticity and tax incidence
Very elastic supply and relatively inela
Government use taxes
To raise revenue for public projects
Roads, schools, and national defense
Manner in which the burden of a tax is shared among
participants in a market
How taxes on sellers affect market outcomes
Immediate impact on
Shortages and waiting lists
Landlords lose their incentive to respond to tenants
Policymakers additional regulations
Tenants get lower rents and lower-quality housing
Difficult and costly to enforce
Controls on Prices
How price floor
Taxes levied on sellers and taxes levied on buyers are equivalent
Wedge between the price that buyers pay and the price that
The same, regardless of whether the tax is levied on
buyers or sellers
Shifts the relative position of the s
Rent control in the short run
Price ceiling: rent control
Local government places a ceiling on rents
Goal: to help the poor
Making housing more affordable
Highly inefficient way to help the poor raise their standard
Adverse effects in
The Federal Reserve
Why economists advice is not always followed
Economic advisers: what policy is best
Communication advisers: how best to explain it to the public
Press advisers: how the news media will report
Legislative affairs advisers: how
The purpose of taxes is to raise revenue to fund government. Money provided by taxation has
been used by states and their functional equivalents throughout history to carry out many
functions. Some of these include expenditures on economic infrastructure