Health and food taxes

timer Asked: Jun 12th, 2013

Question Description

I’m working on a question and need guidance to help me study.

Part I

The government decides to tax cookbooks because they feel that they encourage
overeating and can lead to health issues, such as obesity and heart disease.
Answer the following:

  • What type of tax is this? Explain.

  • What happens to the supply of cookbooks?

  • Who pays the tax at the end?

  • Is this a good way to finance programs to improve health?

  • What other types of tax can the government use to increase revenues?

Part II becomes wildly successful in the United States, and you
decide to export overseas. Answer the following:

  • Does this reflect an absolute or a comparative advantage?

  • Name some issues that you will encounter as you become a multinational

Part III

In the article entitled "The
Economic Effects of Labor Unions Revisited
," Vedder and Galloway attempt to
prove statistically, using historical data, that labor unions do not have a good
effect on the economy. Read the article, and explain the following microeconomic
concepts that the authors discuss and how they are related to unions:

  • Demand, supply, and equilibrium wage rates of labor

  • Unemployment

  • Real GDP and economic growth

  • Income per capita

  • Population growth and aging

  • The article focuses on harmful economic effects, but also mentions some
    positive aspects. What are they?

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors