Please do not cut and paste from other answers. 1. Why do salmon populations fac
ID: 1186903 • Letter: P
Question
Please do not cut and paste from other answers.
1. Why do salmon populations face the threat of extinction while goldfish populations are in no such danger?
2. List the federal government's three most important sources of tax revenue. How do these differ from your state government's three most important sources of tax revenue? Why do you think that these different government entities use different tax bases?
3. In Costa Rica, only a few beaches remain that are nesting grounds for sea turtles. Some of those beaches have communities situated near them; traditionally, the local people collected the turtle eggs and sold them for their purported aphrodisiac powers. As a result, sea turtle populations became endangered. To protect the sea turtle populations, the Costa Rican government gave each family in these villages ownership of a portion of the beach to do with as they please, including the harvesting and selling of sea turtle eggs. Sea turtle populations have started to increase. What is the economic rationale for this result?
Explanation / Answer
1.No one owns the wild salmon, while private individuals own goldfish. The profit motive leads to different allocations of the resources. Salmon fishermen have an individual incentive to catch as many salmon as possible before someone else does. Pet shop owners have a profit incentive to breed goldfish to sell to consumers.
2.Federal government: Income tax, payroll tax, and corporate tax. State government: Sales tax, property tax, income tax. There are both efficiency arguments and equity arguments that suggest it is good to have different tax jurisdictions that use different tax bases. One argument is that the federal government is more efficient at collecting taxes from income since it is more difficult for individuals to hide income by moving income across national boarders than across state boarders. An equity argument is made by the fact that the federal government is able to better facilitate redistribution of funds from high-income states to low-income states.
3. RATIONALE AND OBJECTIVE OF THE RECOVERY PLAN