Categories
Macro Economics

Explain the reasoning for your decision to support or not each view from the different referenced articles.

Learning Goal: I’m working on a macro economics writing question and need an explanation and answer to help me learn.
I. Introduction – In this section you are going to summarize your reference articles. In your own word you will summarize the Objectives, Content and Findings of each Article and will include them in your references. As in your Article Review you must explain in detail what is the specific topic of each article, what research information was used, the findings and the conclusions of each article.
II. Content – Descriptive Analysis In this section (the body) of your paper you will Compare and Contrast the views and the findings of all four papers. These should be specific and explained in Essays developed by you. The idea of this research is for you to practice your own writing. If you need help go to the Writing Studio. Everything must be well explained in good writing style.
III. Conclusions – In this section you will develop your own opinion of the subject topic from what you have learned about the subject. Also must include which of the views you support and/or views you don’t agree on. Explain the reasoning for your decision to support or not each view from the different referenced articles.
IV. References – Include your references in APA format.

Categories
Macro Economics

What should be taxed – Personal Income or Personal Consumption and why?

Learning Goal: I’m working on a macro economics case study and need an explanation and answer to help me learn.
Assignment 2-Case Study-Chapters: 7, 8, 9 & 12
Case Study
When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
Q1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 words). [5 Marks]
Q2: How may it affect Saudi Economy if an income tax is imposed in KSA?(Min 200 words)?[5 Marks]

Q3: In each of the following cases, determine how much GDP and each of its components is affected? [5 Marks]
Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.
Abdul spends $1500 on a new laptop to use it in his software company in KSA.The laptop was built in China.
Jane spends $1200 on a computer to use in her editing business.She got last year’s model on sale for a great price from a local manufacturer.
General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.

Categories
Macro Economics

Critically discuss the welfare effects of this VAT reform and its implications on businesses and consumers in KSA”.

Learning Goal: I’m working on a macro economics question and need a sample draft to help me learn.
In 2020, Value Added Tax (VAT) was increased from 5% to 15% in KSA.
Critically discuss the welfare effects of this VAT reform and its implications on businesses and consumers in KSA”.

Categories
Macro Economics

What should be taxed – Personal Income or Personal Consumption and why?

Learning Goal: I’m working on a macro economics multi-part question and need support to help me learn.
Assignment 2-Case Study-Chapters: 7, 8, 9 & 12
Case Study
When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
Q1: What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 words).
Q2: How may it affect Saudi Economy if an income tax is imposed in KSA?(Min 200 words)?

Q3: In each of the following cases, determine how much GDP and each of its components is affected?
Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.
Abdul spends $1500 on a new laptop to use it in his software company in KSA.The laptop was built in China.
Jane spends $1200 on a computer to use in her editing business.She got last year’s model on sale for a great price from a local manufacturer.
General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.

Discussion-1
In 2020, Value Added Tax (VAT) was increased from 5% to 15% in KSA.
Critically discuss the welfare effects of this VAT reform and its implications on businesses and consumers in KSA”.

Answer_

Categories
Macro Economics

What is Jamal’s opportunity cost of purchasing a pie?

Assignment 1 Question-Chapters: 1, 2, 3 & 4: – [15 Marks]
Q1: Jamal’s weekly budget is $48, which he spends on magazines and pies. [4 Mark]
A)If the price of a magazine is $8 each, what is the maximum number of magazines he could buy in a week?
B)If the price of a pie is $24, what is the maximum number of pies he could buy weekly?
C)Draw Jamal’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. Draw the slope of the budget constraint?
What is Jamal’s opportunity cost of purchasing a pie?
Q2: Many of the goods that China’s Citizens enjoy are produced abroad, and many of the goods produced in the China are sold abroad. When goods are produced abroad and sold domestically, the process is called import and when goods are produced domestically and sold abroad, that process is called export. Suppose an average worker in China can produce one kg of soybeans in 40 minutes and one Kg of coffee in 120 minutes, while an average worker in Paraguay can produce one kg of soybeans in 100 minutes and one kg of coffee in 150 minutes. Answer the following questions. [6 Marks]
A)Which country has the absolute advantage in coffee? Explain.
B)Which country should produce coffee? Explain.
C)If the two countries specialize and trade with each other, which country will import coffee? Explain.
Assume that the two countries trade with each other and the country importing coffee trades 2 Kgs of soybeans for 1 Kg of coffee. Explain why both countries will benefit from this trade.
Q3: Illustrates the interaction (equilibrium point) of demand and supply in the market for petrol based on the table below. And explain following conditions. [5 Marks]
A)Show excess supply (surplus of petrol) and excess in Demand (shortage of petrol) in the same graph and explain.
Suppose the government decided that, since petrol is a necessity, its price should be legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the petrol market if at this price quantity supplied in the market is 575 Millions of gallons?
Price (per gallon in $)
Quantity Demanded (millions of gallons)
Quantity Supplied (millions of gallons)
1.00
800
500
1.20
700
550
1.40
600
600
1.60
550
640
1.80
500
680

Categories
Macro Economics

What should be taxed – Personal Income or Personal Consumption and why?

The require chapter is attached
Case Study
When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
Q1 – What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 Words).
Q2 – How may it affect Saudi Economy if an income tax is imposed in KSA?(Minimum 200 Words)?
Q3 – In each of the following cases, determine how much GDP and each of its components is affected?
Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.
Abdul spends $1500 on a new laptop to use it in his software company in KSA.The laptop was built in China.
Jane spends $1200 on a computer to use in her editing business.She got last year’s model on sale for a great price from a local manufacturer.
General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.
· ****** The require chapter is attached ******

Categories
Macro Economics

What should be taxed – Personal Income or Personal Consumption and why?

The require chapter is attached
Case Study
When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.
Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive.
Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.
Under this proposal, all income that is saved would not be taxed until the saving is later spent. This alternative system, called a consumption tax, would not distort people’s saving decisions.
Various provisions of the current tax code already make the tax system a bit like a consumption tax. Taxpayers can put a limited amount of their saving into special accounts—such as Individual Retirement Accounts and 401(k) plans—that escape taxation until the money is withdrawn at retirement. For people who do most of their saving through these retirement accounts, their tax bill is, in effect, based on their consumption rather than their income.
European countries tend to rely more on consumption taxes than does the United States. Most of them raise a significant amount of government revenue through a value-added tax, or a VAT. A VAT is like the retail sales tax that many U.S. states use, but rather than collecting all of the tax at the retail level when the consumer buys the final good, the government collects the tax in stages as the good is being produced (that is, as value is added by firms along the chain of production). Various U.S. policymakers have proposed that the tax code move further in direction of taxing consumption rather than income. In 2005, economist Alan Greenspan, then Chairman of the Federal Reserve, offered this advice to a presidential commission on tax reform: “As you know, many economists believe that a consumption tax would be best from the perspective of promoting economic growth—particularly if one were designing a tax system from scratch—because a consumption tax is likely to encourage saving and capital formation. However, getting from the current tax system to a consumption tax raises a challenging set of transition issues.”
Q1 – What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 Words).

Q2 – How may it affect Saudi Economy if an income tax is imposed in KSA?(Minimum 200 Words)?

Q3 – In each of the following cases, determine how much GDP and each of its components is affected?

Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.
Abdul spends $1500 on a new laptop to use it in his software company in KSA.The laptop was built in China.
Jane spends $1200 on a computer to use in her editing business.She got last year’s model on sale for a great price from a local manufacturer.
General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.
· ******
The require chapter is attached ******

Categories
Macro Economics

Explain how unemployment and inflation impact the AD/AS model.

Write 3 pages in MLA format, identifying periods of economic growth and recession using the AD/AS models.
Explain how unemployment and inflation impact the AD/AS model.
Evaluate the importance of AD/AS models from a macroeconomic standpoint and analysis.

Categories
Macro Economics

What answers would you give to those questions as the interviewee?

InstructionsInterview ScriptContinue with the industry, COCA COLA, for this assignment. Write a script for a radio/television show as if you were interviewing an expert concerning topics discussed in this unit.
Include input from both the interviewer and interviewee standpoint. What questions would you ask as the interviewer? What answers would you give to those questions as the interviewee? When writing your questions and answers, keep in mind that you have already learned a lot about your industry through earlier assignments in this course. It is suggested that you review your responses to those assignments before beginning this one.
In your interview script, address the following topics:
the structure of the Federal Reserve,
the functions of money,
six qualities of ideal money,
the tools of monetary policy used by the Federal Reserve to manipulate the money supply in the United States,
the current status of monetary policy regarding a contractionary or expansionary stance in the United States, and
the potential impacts on your selected industry over the next 2 years of this monetary policy stance.
Your script must be a minimum of four pages (1,000 words, double-spaced). Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.

Categories
Macro Economics

What were the findings / contributions on this paper, Conclusions and References.

In your own word you will summarize in your Article Review you must explain in detail what is the specific topic of the Peered Review Paper, What research information was used and methodology of research, What were the findings / contributions on this paper, Conclusions and References.
I. Introduce Topic of the Peered Review Article
II. What research information
III. Methodology of Research
IV. What were the findings
V. Contributions on this paper
VI. Conclusions
VII. References