In a two sector model the production function of sector Y=2L+K What is the tax burden on capital in sector X?

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Supposing that X is Capital intensive? Really not sure how to answer given this info, so please tell me why.

2006-08-31 15:01:02 · 2 answers · asked by Charlie Brown 2 in Social Science ➔ Economics

y=2l +K

-k +y =2L

-l -L +y=2

the capital in sector X is 2, because to the left of = is x

2006-08-31 15:14:28 · answer #1 · answered by circusdejojo 3 · 1⤊ 1⤋

The tax burden - as always - lies on the middle class and the poor class... They can't afford the lawyers to find the loopholes... That's why...

2006-08-31 15:12:37 · answer #2 · answered by KnowhereMan 6 · 0⤊ 1⤋