Question

I Need Help ASAP ECONOMICS I will do this hoever many times i need to to get the answers i need

Centerville is a Midwestern town of about 25,000 people, about 50 miles from a large metropolitan area. Its government consists of a mayor and a town council. In recent years, Centerville


has come upon hard times. Its population is dwindling, with many of its young people moving


to the city where the job market is good. When a large shopping mall is built about five miles


outside of town, local shops and businesses in downtown Centerville cannot compete and start


to close.


Investigation 1


As businesses close and people move away,


property values of commercial buildings and of


homes have declined. Many of the buildings in


Centerville are being abandoned.


1. How will this situation affect the tax base of


Centerville?


2. What effects is the situation likely to have on the


operating budget of Centerville?


Investigation 2


The Centerville mayor calls a special meeting of the town council to come up with ways to


raise more revenue.


1. What are some options the town council might


explore for increasing revenue?


2. Which options might they reject for fear of driving more people out of town or forcing more


businesses to close?


Investigation 3


The mayor and town council decide that the


long-term answer to Centerville’s problems is to


attract new businesses to the town. To jump-start


the process, the town council uses some capital


funds remaining from a renovation of police headquarters to buy an abandoned warehouse from a


business that has moved to the city. By selling


municipal bonds, the council hopes to fund a renovation of the warehouse into a town center and


indoor mall with space for town offices and leasing


space for several small businesses.


1. (a) If revenue is already a problem, how can


the town spend money to buy a warehouse?


(b) How would the proposed indoor mall help


attract small businesses?


2. How would new businesses help Centerville’s


revenue problem?


3. What are some tax incentives the mayor and


town council could use to attract new businesses


to Centerville?

Answer 1

With revenue a problem, the town could issue bonds or obtain a mortgage.

New business lead to new sources of revenue via taxation, licensing, and fees.

A cessation of local property ties has been remarkably successful in the real world. It worked in posr-Katrina northern Mississippi.