British government imposed a poll tax

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1) Many developing countries have less restrictive laws than Australia.For example-child labor is common in parts of Asia.Some commentators argue that trade with this countries as undesirable.It encourages exploitation and provides unfair competition to to Australian producers,Other commentators argue that this trade helps the poor.Without trade,the poor in developing countries would not even have their current jobs and would be worse off.List three arguments for and against Australia trading with developing countries.Which arguments do you think are stronger? Why?

2) About 30 years ago British Government imposed a poll tax that required each person to pay a flat amount to the government independent of his or her income or wealth.What is the effect of such tax on economic efficiency?What is the effect on economic equity?Do you consider it to be a popular tax?

3) Many parts of eastern Australia experienced severe drought in recent years.

a) Many communities didn't allow the price of water change. What is the effect of this on water market?Show with diagram any shortage or surplus that arises.

b) Suppose,the price of water was allowed to increase until the quantity demanded equaled quantity supplied. Would the resulting allocation of water be more efficient?In your view,would it be more or less fair than the proportionate reduction of water use? What could be done to make the market solution more fair?

Reference no: EM131438143

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