2. What effects might this steady increase of carbon dioxide have on the organisms living in this area? -As stated before, photosynthesis performers would not be effected, as the can take in carbon dioxide. Respiratory breathers, however, face a fatal issue with extra carbon dioxide in the air. The population of respiratory breathers will slowly decrease, considering plants will give a little bit of oxygen.
The main reason that a government imposes a tax on fossil fuels is to try and correct for the negative externality (pollution) which is produced when they are consumed. Without the tax there would be a market failure as car owners would be over consuming petrol as they are not being charged for the damage to the environment. There are 3 key aspects to this question which are; those that lose from a reduction, those that gain from a reduction and finally at what level the overall price for petrol was before the tax reduction. The major argument for maintaining the level of taxation on petrol and diesel is to protect the environment. When the social costs of consuming a good are higher than the private costs, there is said to be a negative externality.
However in the long-run, this price raise is not enough to make people quit smoking so since cigarettes are a demerit good, it will have a negative effect on the environment and it will increase the number of health issues from second hand smoke, not to mention the high unemployment rate and less taxes for the government. Work Cited: BusinessDictionary.com. 2013. What is inelastic demand? definition and meaning.
Even if countries began to buy less, the implications of their actions on the global village would be catastrophic. If consumption goes down, then less people will be required to work and companies will have to start making cuts to their workforce because they are turning in less profit. The Buy Nothing Day would throw the world into a deeper recession then it already is in. America and the rest of the world have to consume more and spend its way out of the recession and debt. The United States was built on the principle of having debt and spending its way out of it.
However, just the same, negative reviews can reduce the demand. An example would be: “a definitive finding that the caffeine in coffee contributes to heart disease, which is currently being debated in the scientific community, could change preferences and reduce the demand for coffee.” (Principles of Economics) In this case, the price would go down. When something is in shortage for any reason, the price of the product goes up because there’s less of it to go around. For coffee in particular, droughts may affect how many beans can be harvested. The textbook says, “Storms, insect infestations, and drought affect agricultural production and thus the supply of agricultural goods.
With the destruction of the rain forest, climate started changing. With less rain forest, there is less rain resulting in less water for the crops thus causing a drought. How does this cause a drought? The destruction of groundcover can lead to a change in local temperature. “Without trees, erosion would have worsened, carrying away fertile topsoil.
Both buyers and sellers are worse off when goods are taxed (Mankiw, 2008). Corporate Level Taxes Corporate level taxes are explicitly designed to reduce the firm’s input prices which consequently reduces the output prices, this is of utmost importance in discount retailing industry where the strategy is based on price, in fact Jennigs, Weaver and Mayew (2012) points out that consumers are the primary beneficiaries of lower corporate tax rate and the reverse will be true, an increase in corporate tax rate limits industry participants ability expand and seize economic opportunities. Personal Taxes Taxes levied on individuals and household reduces disposable income which threatens the level of consumer spending within the industry,
However, it could be argued that since tobacco lowers life expectancy and causes diseases, tobacco costs considerably more than it should to the taxpayer. Tobacco indirectly costs the government considerable amounts of money in healthcare, all which come from the taxpayer’s pocket; were these to be reduced, taxes may be reduced as well, benefiting individuals and the overall economy. It is my personal belief that although tobacco should not be banned, restrictions should be placed. Tobacco used for medicinal and therapeutic purposes should remain in place and continue to be produced; however, an additional tax should be placed on those who smoke recreationally, in order to discourage this
Capital is mobile: when it is taxed heavily here, it flees somewhere else, meaning lower investment and employment in the United States, and because capital income taxes discourage investment or drive it overseas, they generate little if any tax revenue. Bush's tax cut substantially increased economic growth, boosted the stock market, and increased business investment. The jewel of Bush tax plan was the elimination of the dividend tax on individuals. Another key economic growth provision of the tax plan was the acceleration of income tax rate reductions. According to economic experts, if fully implemented, the Bush tax cut would increase stock values immediately by 5% to 15% and would reduce the cost of capital for businesses by 10% to 30%, depending on the industry.
Predicting the effects in our agriculture is more difficult because less reaserch attention has been done. but according to a research if the temperatures increases the lengh of indiana's growing season will increase. due to the conbined astmopheric and nitrogen. is expected to have wetter winters and dryer summers. The inability of rain will led to increase heat and that may lead to have dryer soils and that would have a big impact in our agriculture.