ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!

[elemis]

Thanks Nid and aangel, I got it. I thought the prices rose FIRST and this would casue a MOVEMENT along the curves.

NVM Silly doubt.

+rep aangel (sorry Nid but she answered first   )

EDIT : I +repped you too Nid - seems I can add rep twice in a row immediately

[rhea]

are indirect taxes regressive?

[elemis]

are indirect taxes regressive?

Yes, they affect lower income groups more. This is since lower income groups spend a larger PROPORTION on goods that are regressively taxed.

hence a larger PROPORTION of their income  is taken as tax through these regressive sachems.

[J.Darren]

are indirect taxes regressive?

Whether a tax is regressive, progressive or proportional depends on its relationship with the person's income ... In this case the amount of GST payable by consumers with differnet levels of income is the same, hence GST is regressive.

[aangel42]

Please can someone differentiate between:

1) social costs and external costs
&
2) social benefits and external benefits

Thank you!

[elemis]

For your first question assign each group a value.

MALE WORKERS                              FEMALE WORKERS
highest paid    lowest paid                highest paid       lowest paid
$300                $200                           $100               $50

Calc their new income as a result of the percentage rises. You'll get the answer I just did this paper.

[elemis]

1) social costs and external costs
-Social costs = private costs  +  external costs
  - external costs are all the negative effects to SOCIETY and NOT the firm/consumer of the good. Society receives NO compensation for the
     impacts on them   
-Smoking affects the health of the  smoker (PC); the people around him undergo passive smoking and may suffer from asthma (EC)


2) social benefits and external benefits
- Apply the above

[BlackBunny103]

Hey guys, can you please explain to me why the answer of this question is A? I put B though. And what is meant by the unit of account?
Thanxx

[Freaked12]

Hey guys, can you please explain to me why the answer of this question is A? I put B though. And what is meant by the unit of account?
Thanxx

because in a planned economy goods are distributed according to the needs of the population and not what amount of money they have

[elemis]

The answer is   C   look at the attached MS

[BlackBunny103]

because in a planned economy goods are distributed according to the needs of the population and not what amount of money they have

Thanxx, but I still don't get why the answer is A. And what is the unit of account?

[elemis]

Hey guys, can you please explain to me why the answer of this question is A? I put B though. And what is meant by the unit of account?
Thanxx

Money exists in a planned economy and people were definitely trying to use it in this scenario to buy goods (hence the queues)
So A is wrong

This is a planned economy and has NOTHING to do with a market economy  so B is wrong

C is correct since in Planned economies the gov produces goods by allocating resources but it usually is unaware of what consumers want.
So people often queue up to get whatever few goods that they WANT before they are sold off.

[elemis]

Thanxx, but I still don't get why the answer is A. And what is the unit of account?

ITS NOT A !!!!!!!!!!

ITS C !!!!  Look at the MS I attached at the top of this page.

[BlackBunny103]

Money exists in a planned economy and people were definitely trying to use it in this scenario to buy goods (hence the queues)
So A is wrong

This is a planned economy and has NOTHING to do with a market economy  so B is wrong

C is correct since in Planned economies the gov produces goods by allocating resources but it usually is unaware of what consumers want.
So people often queue up to get whatever few goods that they WANT before they are sold off.

OMG this is lame, I looked at the wrong answer from the mark scheme >.<.

Oh right, didn't notice the word "market" system, that's why I have to read the question more carefully.
Thanxx I get it now

[elemis]

Hang on