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Question 1:
(a) Why does Government intervene in the market's allocation of resources even if the economy is Pareto efficient?
(b) What are the principal reasons why markets fail to produce efficient outcomes?
Question 2:
(a) Explain the characteristics of an efficient tax system.
(b) Use demand and supply model to analyse the impact of a specific tax on the producer, consumer and government.
1. The NGO called Transparency International (TI) publishes a "Corruption Perceptions Index" (CPI) that ranks countries on a scale of 0 to 10 based on how corrupt their public sec
The following 2012 projected income statement is provided by your new client, John Green, single, and sole proprietor of Green Industries. Green Industries started business in Marc
Q. What do you mean by Arbitration? Ans: Arbitration is a device for setting up difference between the Railway Administration and contractor by intervention of third person
evaluate the importance of the principal issue litigated in the case in question using the tax research steps outlined in Appendix A of your text.
Amy R. and David T. Smith are married and live at 123 Main Street, Stafford, VA 22554. Dave is self-employed as a web developer and Amy is a commercial refrigeration sales represen
You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 tw
In response to rising obesity, a number of pundits have proposed taxing corn syrup, an ingredient in most soda pop. Let's consider the market for corn syrup assuming this tax take
1. Don and Harvey began operations as a partnership on October 3, 2010. The company spent $60,500 on organization costs that year. How much can the company deduct in 2010 relatin
a. You are engineering a Leveraged-Buy-Out (LBO) of ACME Industries, an industrial bottle maker. After the LBO, the firm will be financed with 90% debt and 10% equity. Fred Farber,
(i) Discuss, using appropriate examples, the concept of ‘transfer pricing’ and explain why tax authorities around the world have become concerned about it.
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