Q5. Discuss whether Rentberry can improve fairness of the housing rental market. (2 mark)
The rentberry app does not create fairness to consumers as it creates inequality between different income class levels. High-income earners have an advantage whilst low-income earners are at a disadvantage. Low income earners have a low chance of winning an auction for rental properties due to being outbid by high income earners. On the other hand, high income earners have a higher chance of winning an auction due to their higher buying power.
PART II (4 marks) Read the article “Our addiction to Apple is why its profits are soaring” as linked here: http://theconversation.com/our-addiction-to-apple-is-why-its-profits-are-soaring-36854
Based on this …show more content…
Q1. ‘Excise’ and ‘GST’ are common taxes used in Australia. Do your own research and explain the difference between the two. Identify the source of information. Is the tax on unhealthy foods described in the article excise or GST? (2 mark)
Excise tax is a commodity-based tax on goods with the purpose of reducing the level of consumption of a particular good. Tobacco, alcohol, fuel and petroleum goods is a prominent example of excise taxing. However, goods and services taxation (GST) is the general concept of taxing goods and services that are consumed by the public.
The main differences is that excise tax is paid by producers and goods and services tax are paid by consumers. The tax identified on unhealthy foods is an excise tax reinforced through the government’s goal of reducing the consumption of unhealthy products and the percentages of obesity within Australia. This is supported through the taxation of sugar, salt and saturated fat.
- …show more content…
The disadvantage of this proposition is the government tax revenue decreases. This is highlighted through the increase of price and the decrease in quantity demanded of unhealthy food. Another negative impact is producer loses their sales due to the government’s action of decreasing the production of unhealthy food. On the other hand, the gains of implementing the tax on unhealthy food is the reduction of healthcare cost. Individuals will have a higher chance to avoid health risk such as heart disease, type 2 diabetes and cancer. Therefore, consumers will benefit in the long term benefiting their health and
The rentberry app does not create fairness to consumers as it creates inequality between different income class levels. High-income earners have an advantage whilst low-income earners are at a disadvantage. Low income earners have a low chance of winning an auction for rental properties due to being outbid by high income earners. On the other hand, high income earners have a higher chance of winning an auction due to their higher buying power.
PART II (4 marks) Read the article “Our addiction to Apple is why its profits are soaring” as linked here: http://theconversation.com/our-addiction-to-apple-is-why-its-profits-are-soaring-36854
Based on this …show more content…
Q1. ‘Excise’ and ‘GST’ are common taxes used in Australia. Do your own research and explain the difference between the two. Identify the source of information. Is the tax on unhealthy foods described in the article excise or GST? (2 mark)
Excise tax is a commodity-based tax on goods with the purpose of reducing the level of consumption of a particular good. Tobacco, alcohol, fuel and petroleum goods is a prominent example of excise taxing. However, goods and services taxation (GST) is the general concept of taxing goods and services that are consumed by the public.
The main differences is that excise tax is paid by producers and goods and services tax are paid by consumers. The tax identified on unhealthy foods is an excise tax reinforced through the government’s goal of reducing the consumption of unhealthy products and the percentages of obesity within Australia. This is supported through the taxation of sugar, salt and saturated fat.
- …show more content…
The disadvantage of this proposition is the government tax revenue decreases. This is highlighted through the increase of price and the decrease in quantity demanded of unhealthy food. Another negative impact is producer loses their sales due to the government’s action of decreasing the production of unhealthy food. On the other hand, the gains of implementing the tax on unhealthy food is the reduction of healthcare cost. Individuals will have a higher chance to avoid health risk such as heart disease, type 2 diabetes and cancer. Therefore, consumers will benefit in the long term benefiting their health and