Business Finance - 1044

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mindbender1

mindbender1

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  • Due on: Thu 08 Mar, 2012 (03:39am)
  • Asked on: Thu 08 Mar, 2012
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Description

 

P4-1. In Figure 4.2 , by how much is the market

 

(a) Overproducing private goods?

 

(b) Underproducing public goods

 

 

 

P4-5

 

If the average adult produces $75,000 of output per year, how much output is lost as a result of deaths from secondhand smoke, according to the News on page 70?        

 

U.S. Details Dangers of Secondhand Smoking

 

Secondhand smoke dramatically increases the risk of heart disease and lung cancer in nonsmokers and can be controlled only by making indoor spaces smoke-free, according to a comprehensive report issued yesterday by U.S. Surgeon General Richard H. Carmona.“The health effects of secondhand smoke exposure are more pervasive than we previously thought,” Carmona said. “The scientific evidence is now indisputable: Secondhand smoke is not a mere annoyance. It is a serious health hazard that can lead to disease and premature death in children and nonsmoking adults.” According to the report, the government’s most detailed statement ever on secondhand smoke, exposure to smoke at home or work increases the nonsmokers’ risk of developing heart disease by 25 to 30 percent and lung cancer by 20 to 30 percent. It is especially dangerous for children living with smokers and is known to cause sudden infant death syndrome, respiratory problems, ear infections and asthma attacks in infants and children. . . The report does not present new scientific data but is an analysis of the best research on secondhand smoke. It said, for instance, that the Centers for Disease Control and Prevention estimated last year that exposure to secondhand smoke kills more than 3,000 nonsmokers from lung cancer, approximately 46,000 from coronary heart disease, and as many as 430 newborns from sudden infant death syndrome.               

 

P4-6. (a) Assuming a 10 percent sales tax is levied on all consumption, complete the following table:                                      

 

                                               

 

                                               

 

IncomeConsumption     Sales Tax              % of Income Paid in Taxes

 

$10,000                                 $12,000                                

 

20,000                                     18,000                

 

40,000                                   32,000                  

 

80,000                                   60,000                  

 

                                               

 

                                               

 

                                               

(b) Is the sales tax progressive or regressive?                    

Attachments
Mod 1 P4-1 & 5 & 6.xlsx
Mod 1 P4-1 & 5 ...
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