Ask Microeconomics Expert

The federal government occasionally goes through the process of reauthorizing and modifying the State Children's Health Insurance Program (SCHIP, which was introduced in 1997). Money for this program could be raised by increasing taxes generally (imagine adding a small percent to all income tax) or - as suggested by some past proposals - by taxing cigarettes. describe what the lump-sum principle would suggest about which way would allow the money to be raised with the smallest loss in overall utility. Then make an argument for why the government may still prefer using the other approach.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M949000

Have any Question? 


Related Questions in Microeconomics

Question with walmarts success many other stores such as

Question: With WalMart's success, many other stores such as Target, Macy's and Walgreen's decided to implement this strategy and create their own brands. Many consumers opt for these products because they believe that th ...

Question there are three industrial firms in happy

Question: There are three industrial firms in Happy Valley: Firm A- Pollution Level=70 Units Cost to reduce Pollution=$20/Unit Firm B- Pollution Level=80 Unites Cost to reduce Pollution= $25/Unit Firm C- Pollution Level= ...

Questionnbsppeople join tennis clubs for a fixed fee per

Question:  People join tennis clubs for a fixed fee per year, which entitles them to play as much as they want without charge. Because people who pay these fees play more tennis than others (who can use free public court ...

Question 950 wordsyou have selected what you believe is an

Question: 950 words You have selected what you believe is an ideal market segment to pursue with your advertising and public relations strategy. You believe that targeting this segment will reach your specific marketing ...

Question describe the main goals of the federal reserve

Question: Describe the main goals of the Federal Reserve. What happens when these goals come into conflict? Explain how the Fed would decide if lower inflation is more important than lower unemployment? Would this decisi ...

Question between 1992 and 2002 the university of

Question: Between 1992 and 2002, the University of California's stock market holdings underperformed market averages by $2.3 billion. Officials pointed out that the loss was unimportant because they actually grew by $20 ...

Question the junk buyers company travels from home to home

Question: The Junk buyers Company travels from home to home, looking for opportunities to buy items that would otherwise be put out with the garbage, but which the company can resell or recycle. Which will be larger, the ...

Question suppose the us government decides to reduce

Question: Suppose the U.S. government decides to reduce military spending. Using the Simple Keynesian model, describe graphically the impact of this event on equilibrium real GDP. If equilibrium real GDP was equal to its ...

Quesyion intermediate microeconomicssuppose that a firms

Quesyion: Intermediate Microeconomics Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in bo ...

Question in europe the uk is the only country where there

Question: In Europe, the UK is the only country where there has been a consistent tradeoff between inflation and unemployment. What factors caused this tradeoff to occur in Britain but not in Continental Europe? The resp ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As