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Category: IB2 Economics | Views: 28 | Added by: diamondsestates51 | Date: 2023-12-06 | Comments (0)

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Category: IB2 Economics | Views: 65 | Added by: thomasjack9654 | Date: 2023-04-14 | Comments (0)

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    Category: IB2 Economics | Views: 72 | Added by: thomasjack9654 | Date: 2023-01-05 | Comments (0)

    Ann Rogers
    Economics SL
    Mr. Polis
    14/10/2010
    Taxation: High or Low?

    Before any discussion about whether or not taxes should be high or low, one needs to define the term tax, and any subsets thereof. A tax is a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc. (Dictionary.com) There are two main types of taxes, direct and indirect. Direct taxes are taken directly from the income of the person paying taxes. These taxes are usually things like income tax, property tax and any other tax the government decrees should come straight from the income. An indirect tax is a tax that is placed on consumables and every consumer pays it if they buy a product that is taxed. Indirect taxes are called such because instead of being taken directly out of the income, they pass through the hands of producers before reaching the government. An example of this type of tax would be the Value ... Read more »

    Category: IB2 Economics | Views: 863 | Added by: arogers | Date: 2010-10-15 | Comments (0)

    Davis Drengers
    Economics
    Mr. Polis
    Taxes

    The definition of taxes are - required payments of money from individuals, firms and households to government that are used to provide public goods and services for the benefit of the community as a whole. Taxes are the main income for the government.

    Reasons for taxes:
    Taxes are the main income for the government. Taxes covers government expenditure (We know that government provide country's wealth with many social benefits like child care support, pensions, free medical help for children and many others. Government also pays for road infrastructure, lighting on the streets and so on. So we can see where the majority of taxes goes)
    To correct market failure (Governments can intervene in individual markets by changing taxes and this changing demand. Government might add VAT-value added taxes for some products, so then taxation becomes a way of increasing economic efficiency)
    To regulate imports a ... Read more »

    Category: IB2 Economics | Views: 832 | Added by: ddrengers | Date: 2010-10-15 | Comments (0)

    Martin Saarinen
    Economics
    International School of Latvia
    Grade. 12
    Mr. Polis
    14.10.10

    Blog - Income Distribution/Taxation

    Income distribution and taxation are closely linked. An unequal distribution of income is something that governments do not want, because this means that the society is getting more and more divided into the rich and the poor. As logic and market forces dictate the number of rich people would be smaller than the number of poor people, and as social structure or conduct dictates the rich would be in control over the majority of domestic matters, leaving the poor often without a say. This is something that the government does not want. It is also false to say that income inequality is a bad thing. This is because it needs to be established that an economy needs those with low income jobs and those with high income jobs, the economy needs winners and losers. That is the very basis of a capitalistic economy. Workers such as fac ... Read more »

    Category: IB2 Economics | Views: 908 | Added by: Martin | Date: 2010-10-14 | Comments (0)

    Taxes are compulsory financial contributions imposed by a government to raise revenue. There are direct taxes and indirect taxes; direct taxes are levied directly on an individual or organization, such as income tax while indirect taxes are levied on goods or services such as value added tax or exercise duties. As the definition says taxes are mostly used to raise revenue of governments, but governments can have other reasons for taxation, too.


    • Market failure can be corrected with taxation and efficiency can be increased – governments can impose a tax on unhealthy products such as cigarettes to increase the health of their workers that then can work longer, pollution can be controlled by imposing a pollution tax and people might read more if the VAT is removed from books.
    • The economy as a whole can be influenced just as well. Inflation, unemployment and the balance of payments can be managed by governments by increasing or decreasing taxation.
      ... Read more »
    Category: IB2 Economics | Views: 608 | Added by: Nele | Date: 2010-10-13 | Comments (1)

    Income distribution

    What is “income distribution”?

    According to Oxford Economics dictionary income distribution is “The division of total income between different recipients. *Functional income distribution is the division of income between the owners of the different factors of production. *Personal income distribution is the distribution of income classified by size. Income distribution can be measured before and after the deduction of direct taxes and the addition of transfers.” (pg 216)

    [img]http://upload.wikimedia.org/wikipedia/en/6/6eAmerican_Society.jpg
    [/img]

    Income distribution just represents, how the income is distributed amongst the people in an economy. Some countries face a huge problem of income inequality and income inequality is “Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most ... Read more »

    Category: IB2 Economics | Views: 786 | Added by: dbondars | Date: 2010-10-07 | Comments (0)

    Anett Balázs
    Mr.Polis
    Economics IB2 HL

    Inflation in Latvia: Causes, Consequences and the Governmental Response

    Inflation is defined as a persistent increase in the average price level in the economy, usually measured through the calculation of a consumer price index.

    Causes of inflation in Latvia

    • Exchange rate Developments: “Latvia has a fixed exchange rate, with the currency pegged to the Euro, and the government does not want this to change. If this nominal rate of exchange stays fixed (at one Euro for 0.7 Lats), then the only way to lower the value of the currency internationally is to do so in “real terms.” This means pushing wages and prices down.”

    • “Changes in administrative prices and widespread expectations of higher prices due to EU accession or an unfavorable exchange rate developments. (Lat is pegged to the Euro).  Result: overheating in the labor market

    • Rise in production costs, which leads to an increase in the price of the final ... Read more »

    Category: IB2 Economics | Views: 754 | Added by: Anettush | Date: 2010-09-14 | Comments (0)

    Megan Phipps
    10/09/10
    Mr.Polis
    Inflation in Latvia: Causes, consequences, and the Government Response.
    Inflation is defined as the increase in the amount of money and credit in relation to the supply of goods and services. It is a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency. Basically, everything becomes more valuable except money.
    Latvian Inflation: The cause for Latvia’s high inflation is mainly dependent on the currency rates. The Euro has become more valuable, leaving the Lat to decrease in value. Also, the growth rates are high in the Baltics leading to high inflation. Unfortunately because the inflation is so high it has prevented the growth to stay high. Latvia is a transition country because it such a young independent country and a big part of the inflation is related to the affects of this transition and their privatization policy that was intr ... Read more »
    Category: IB2 Economics | Views: 709 | Added by: Mphipps | Date: 2010-09-10 | Comments (1)

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