To promote increased use of port facilities in a major coastal? city, a state government has decided to construct a? state-of-the-art lighthouse at a projected cost of? $10 million. The state proposes to pay half this cost and asks the city to raise the additional funds. Rather than raise its? $5 million in funds via an increase in city taxes and? fees, however, the? city's government asks major businesses in and near the port area to contribute voluntarily to the project. The city is likely to face problems in raising the funds because
A.the combination of public and private monies will create doubt as to the? lighthouse's legal owner.
B.individual businesses may presume that others will pay for the lighthouse so that they can escape paying for their portion without causing a reduction in the? structure's benefit..
C.major businesses in and near the port area are probably too numerous for the city to contact.
D.the businesses will demand tax breaks as compensation for their contributions.
B.individual businesses may presume that others will pay for the lighthouse so that they can escape paying for their portion without causing a reduction in the? structure's benefit..
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Assume that you own a lake house. Unfortunately your job will require that you spend the summer on the road and you won't be able to enjoy it. You decide that you will rent it out for the summer while you are working
The mortgage payment on the lake house is $1000 per month and the upkeep and maintenance if it is occupied is $200 month but zero if it is not rented. What is the minimum rent that you would be willing to receive and why? What information is irrelevant in your decision? Explain.
The complexity of the U.S. federal income tax system results in significant annual deadweight losses. The opportunity cost of the hours taxpayers spend on record keeping and completing their tax returns amounts to billions of dollars
a. If the tax system was simplified, how would this benefit the economy? b. Why hasn't the tax system been simplified?
The sum of the current account, the capital account, and the official reserve transaction account is
A) always positive. B) always negative. C) positive when exports are greater than imports. D) zero.
Which of the following characteristics of Exland, a less-developed country, is not typical?
a. a high percentage of the population under 15 b. political instability c. modern technology d. lack of infrastructure e. dependence on exports of natural resources