Refer to the figure to answer the following three question. 이이이이 (CJ Q Tay In which market(s) will the majority of a tax be paid by the buyer? (a) (b) (c) (d) 10 X TD) m (b) m (c) (d) In which market(s) will the majority of a tax be paid by the seller? (a) In which market(s) will the tax be most equally divided between the buyer and the seller? (a) m (b) (c) (d)
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- 1-) Qd=12-2p Qs=2+2p. The government collects a tax of $1 per unit of the good. What is the type of this tax? a) income tax b-) ad valorem c-) specific special consumption tax e) social security taxConsider the following supply and demand function, QD = 65 − 2P and QS = 1.5P − 5, and assume a $17.50 excise tax is collected from consumers. (a) Calculate price and quantity in this market before (P1 and Q1) and after the tax (P2 and Q2). (b) What is the amount of tax revenue that is collected from con- sumers, producers and in total? (c) What is the relative tax burden of consumers and producers? (d) Show how the elasticity of supply and demand determine the shar- ing of the tax burden. (e) What is the relative tax burden of producers and consumers if the tax is collected from producers, instead?What is the difference between a general sales tax and an excise tax?
- A) What type of taxation does a Sole proprietorship have? Single or double B) What type of taxation does a LLC have? Single or doubleIn State Z, the sales tax rates vary based on the type of goods sold. For clothing items, the tax rate is 5%, and for electronics, the tax rate is 8%. If Sarah purchases a jacket for $50 and a smartphone for $600, how much sales tax does she pay in total? A) $29 B) $44 C) $46 D) $5050 Price (P) S2 (after tax) S; (before tax) Tax i of $35 $30 $25 $20 E 90 100 Quantity (Q) The diagram above shows a market before and after an excise tax has been levied by the government. The diagram indicates the effective price (net of tax) that sellers receive after the tax is: Select one: а. $35 b. $20 c. $25 d. $30
- 1) Name 3 Tax Regimes and define the difference between each. 2) Which regime does Illinois income taxation follow? 3) Are sales taxes progressive? What are they?Indirect taxes: Definition Explain why governments impose indirect taxes. Distinguish between specific and ad valorem taxes. Draw diagrams to show specific and ad valorem taxes, and analyze their impacts on market outcomes. Discuss the consequences of imposing an indirect tax on the stakeholders in a market, including consumers, producers and the government (EVALUATE). Explain, using diagrams, how the incidence of indirect taxes on consumers and firms differs, depending on the price elasticity of demand and on the price elasticity of supply. Calculate the effects on markets and stakeholders of indirect taxesPrice Amount Requested (Unit) Amount Offered (Unit) (IDR) 2400 120 180 2000 160 150 Based on the demand function and supply function that you got in question number 1 above, determine the new market equilibrium point if the government imposes a perunit sales tax (fixed tax) on the goods "X" of Rp. 100 / unit. How much is the tax burden borne by consumers and the tax burden borne by producers, and how much is the government tax revenue
- Use the information in the table below to answer the questions that follow.Tax rates for individuals: 2019/2020 tax yearTaxable Income (R) Tax Payable1 – 195 850 18% of taxable income195 851 – 305 850 R35 253 +26% of the amountabove R195 850305 851 – 423 300 R63 853 +31% of the amountabove R305 850423 301 – 555 600 R100 263 +36% of the amountabove R423 300555 601 – 708 310 R147 891 +39% of the amountabove R555 600708 311 – 1 500 000 R207 448 +41% of the amountabove R708 3101 500 001 and above R532 041 +45% of the amountabove R1 500 000 Calculate how much tax an individual earning a taxable income of R425 000 per annum would pay Calculate the average tax rate of an individual earning a taxable income of R425 000 per annumIndirect taxes: Draw diagrams to show specific and ad valorem taxes, and analyze their impacts on market outcomes. Discuss the consequences of imposing an indirect tax on the stakeholders in a market, including consumers, producers and the government (EVALUATE). Explain, using diagrams, how the incidence of indirect taxes on consumers and firms differs, depending on the price elasticity of demand and on the price elasticity of supply.Q.1.8 An example of an indirect tax is: (a) income tax.(b) secondary tax on dividends.(c) company tax.(d) value added tax.Q.1.9 Which one of the following statements is INCORRECT? (a) Provincial government forms part of the public sector.(b) Central government forms part of general government.(c) Provincial government forms part of the general government.(d) Public corporations form part of general government. Q.1.10 Openness of an economy is: (a) the extent to which a country is involved in international trade andfinance.(b) the degree to which a country generates its economic growth.(c) the degree to which a country generates its income.(d) the extent to which a country is involved in tourism.