You currently earn $62,000 a year and you must pay $12,000 in federal income tax. You are thinking of installing solar panels and discover it will cost you $12,300 to get them installed. You learn about the Investment Tax Credit (ITC), also known as the federal solar tax credit, which allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. a) How much can you deduct from your taxes?
$
b) What is your taxable liability now?
$

Your uncle borrows $53,000 from the bank at 11 percent interest over the nine-year life of the loan. use appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest

4. understanding different policy options to correct for negative externalities carbon dioxide emissions have been linked to global warming. the following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. for each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. public policy command-and-control policy tradable permit system corrective subsidy corrective tax the government charges factories $110 for every ton of carbon dioxide they emit. the government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $110 to any citizen who plants a tree. the government limits total carbon-dioxide emissions by all factories to 180,000 tons per month. each individual factory is given the right to emit 140 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace.

Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good? a. compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line. b. waiting in line imposes a cost on the consumer; paying higher prices does not. c. both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output. d. waiting in line benefits consumers at the expense of producers.