1000-1500 wordsPart IThe
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 IIJustcookbooks.com 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 corporation.Part IIIIn 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 laborUnemploymentReal GDP and economic growthIncome per capitaPopulation growth and agingThe article focuses on harmful economic effects, but also mentions some positive aspects. What are they?
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