Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
In a published source or on the Internet, find out whether the U.S. federal government had a budget deficit or surplus last year. What do policymakers expect to happen over the next few years? (Hint: The website of the Congressional Budget Office is http://www.cbo.gov.)

Principles of Microeconomics 7
The information in many of the tables in this chapter can be found in the Economic Report of the President, which appears annually. Using a recent issue of the report at your library or on the Internet, answer the following questions and provide some numbers to support your answers. (Hint: The websit

Principles of Microeconomics 7
The chapter states that the elderly population in the United States is growing more rapidly than the total population. In particular, the number of workers is rising slowly, while the number of retirees is rising quickly. Concerned about the future of Social Security, some members of Congress propose

Principles of Microeconomics 7
Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares com-bined). You also pay federal income taxes as in Table 3. How much tax of each type do you pay

Principles of Microeconomics 7
Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not. Discuss the merits of this exclusion. Consider both efficiency and equity.

Principles of Microeconomics 7
When someone owns an asset (such as a share of stock) that rises in value, he has an accrued capital gain. If he sells the asset, he realizes the gains that have previously accrued. Under the U.S. income tax system, realized capital gains are taxed, but accrued gains are not.a.Explain how individuals

Principles of Microeconomics 7
Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Is this plausible? Explain

Principles of Microeconomics 7
The Tax Reform Act of 1986 eliminated the deduct-ibility of interest payments on consumer debt (mostly credit cards and auto loans) but maintained the deductibility of interest payments on mortgages and home equity loans. What do you think happened to the relative amounts of borrowing through consume

Principles of Microeconomics 7
Categorize each of the following funding schemes as examples of the benefits principle or the ability-to-pay principle.a.Visitors to many national parks pay an entrance fee.b.Local property taxes support elementary and secondary schools.c.An airport trust fund collects a tax on each plane ticket sold