Governments throughout history have levied some very interesting taxes. Each of the following taxes changed citizens’ behavior. Determine whether it’s likely that the tax also addressed a market failure. Required:a. The Hat Tax: Adopted by the British Government, requiring every hat to bear a stamp on the inside showing it was legal. b. The "Flatulence Tax": Proposed, but ultimately not adopted, in New Zealand to help reduce methane emissions from livestock. c. The Window Tax: Levied by English King William Ill on the number of windows in a house, which tended to be more numerous in wealthier homes. d. The Cowardice Tax: Introduced in medieval England and applied to people who refused to defend the country at request of the king.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.