Government intervention

What kind of tax is the GST?

• Progressive

• Regressive

• Proportional

• Unfair

A direct tax is....

• The tax paid on income or profits

• A tax that is paid on goods and services

What kind income tax system do we have in Australia?

• Progressive

• Proportional

• Static

• Percentage based

A proportional tax is one where the same percentage of tax is charged regardless of the level of income or profits

• True

• False

Which of the following would have a positive externality?

• A decrease in the price of cars and petrol

• Research ad development spending by companies

• A large, open air hip hop concert

• Fracking for gas in the Liverpool plains

Woolworths has been pressuring its fruit and vegetable suppliers not to sell to a rival supermarket chain. Which of the following best describes this type of market failure?

• Price discrimination

• Exclusive dealing

• Collusion

• Misleading and deceptive conduct

Which of the following is an example of a negative externality?

• Collusion

• Government assistance to industry

• Social costs associate with production

• An appreciation in the exchange rate?

Which of the following is the free market most likely to under-produce

• Demerit goods

• Cheaper products

• Goods with negative externalities

• Goods that are non-excludable

This person is the leader of which level of government?

• Federal

• State

• Local

The State government funds defense.

• True

• False