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The government can alter the level of economic activity by changing the rates of the various types of taxes that consumers and businesses are required to pay. By changing the level of economic activity, the government is attempting to achieve its key economic goals including low inflation, low unemployment, and a sustainable rate of economic growth. An example of how tax can be used is provided in the figure 1. It shows that a decrease in…

Part 1: Is this assessable income? Is the income in each of these scenarios assessable income? Jane found a $50 note in the street. Yes No Molly works part-time as an art teacher. yes no Xavier was unemployed for 5 months and received a government allowance. yes no Ngo sold his investment property and made a capital gain of $52,…

Table 1: Main source of household income by year and percentage, Australia, 2007–08 to 2017–18   Main source of household income 2007–08 2009–10 2011–12 2014–15 2015–16 2017–18 Employee income 23.82 23.92 25.05 22.57 24.19 21.71 Own unincorporated business income…

Use the diagrams that follow to indicate the impact of cutting the rate of each of 4 different taxes: the GST, customs duty, excise duty, and company income tax. Use an upward arrow ↑ to indicate an increase or a downward arrow ↓ to indicate a decrease or a cross X to indicate no effect for each economic variable. Government action: Cutting the rate of GST Cutting the rate of GST Effect on the market ⟶ Economic…

Human Development Index The Human Development Index (HDI) is a statistical tool used to measure a country's overall achievement in its social and economic dimensions. The social and economic dimensions of a country are based on the health of people, their level of education attainment and their standard of living. Image: Representation of how the Human Development Index (HDI) is determined. The diagram shows 3 dimensions, the indicators of…

Use Table 1 to answer the following questions. Table 1: Tax revenue, spending and the HDI of selected countries in the Asia region Country GDP per capita ($US) Total Taxes (% of GDP) Government spending (% of GDP) HDI Australia $54,060 27.30% 26.96% 0.939 Bangladesh $4,978 7.94…

Your task is to explore similarities and differences between the Australian economy and one other economy in the Asia region. Select an economy that is different from those you examined in the student worksheet. Locate information on the following: Economic growth Size of the public sector (including tax receipts and outlays) Distribution of income The role of the government in providing healthcare, education and social welfare…

There are 4 types of goods in economics, which are defined based on excludability and rivalrousness in consumption. This means we categorise goods depending on whether people can be prevented from consuming them (excludability) and whether they can be consumed by individuals without affecting their availability to other individuals (rivalrousness). Based on those 2 criteria, we can classify all physical products into 4 different types of goods…