you will find the Questions in the book, Question 6 chapter 11 and Question 1 chapter 29

you will find the Questions in the book, Question 6 chapter 11 and Question 1 chapter 29

Question 6 chapter 11. Some observers have proposed higher income and wealth taxes on the wealthy. Given that one’s wealth generally depends primarily on how much output one produces, how do these taxes affect the incentives of people who are the most productive? Assume that the proceeds from the taxes are given out to the poor. How does this affect the to the total income and wealth of society as a result of higher taxes such as these? ir incentives? Overall, what do you predict will happen?

Question 1 chapter 29. Assume you are going to take a trip to Paris. You buy euros at your local bank or at the airport. Then you start spending them once are in Paris. Every time you buy something there, you explicitly or ou implicitly translate the euro price into dollars. Often, you might sav to yourself, “How do Parisians afford such high prices?” What is wrong with this line of reasoning? (Hint: In what currency do Pari- sians earn their income?)