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a.If you have earned GH 20000 per year for the past 10 years.What is your permanent income
Indicate whether the following statements are true or false and provide a reason for each answer:
- When the Minister of Finance annually increases sin taxes, it is an example of a unit tax.
- Taxes on companies’ accounting profit will not lead to an excess burden on them.
- A broad- based VAT is a regressive tax that will affect the higher incomes earners more, as they buy more goods and services
- Public debt management has only the minimisation of debt servicing cost as a goal.
The Laffer curve shows that higher personal income tax rates will not necessarily produce more tax revenue.'' Critically discuss this statement using diagram.
South Africa has great need for investment by the private sector. How would the income tax on companies affect the decision of an entrepreneur to invest?
Describe the nature of the goods produced by a monopolistically competitive firm for 10marks
Eskom, as a natural monopolist state-owned enterprise (SOE0, produces too little output at too high a price. Using a figure, illustrate and explain the social costs of a natural monopoly (e.g. electricity generation)
Indicate whether the following statements are true or false and provide a reason for each answer:
1. When the Minister of Finance annually increases sin taxes, it is an example of a unit tax.
2. Taxes on companies’ accounting profit will not lead to an excess burden on them.
3. A broad- based VAT is a regressive tax that will affect the higher incomes earners more, as they buy more goods and services
4. Public debt management has only the minimisation of debt servicing cost as a goal.
Explain three possible profit maximizing positions of perfectly competitive firms in the short run for 15 marks
Describe the nature of godlods produced by a monopolistically competitive firms for 10 marks
