Economic Principles Assignment

Added on - 28 May 2020

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Running Head: ECONOMIC PRINCIPLESEconomic PrinciplesName of the StudentName of the UniversityAuthor note
ECONOMIC ASSIGNMENTTable of ContentsAnswer 1: Definitions and Concepts...............................................................................................2Answer i.......................................................................................................................................2Answer ii......................................................................................................................................2Answer 2: Market Analysis.............................................................................................................3Answer i.......................................................................................................................................3Answer ii......................................................................................................................................4Answer iii.....................................................................................................................................5Answer 3: Policy effectiveness and alternative strategies...............................................................6Answer i.......................................................................................................................................6Answer ii......................................................................................................................................6References........................................................................................................................................8NAME AND STUDENT IDPage1
ECONOMIC ASSIGNMENTAnswer 1: Definitions and ConceptsAnswer iTaxes are the compulsory payment to government. Any direct or indirect tax impact theparties those are required to pay the tax and also the some burden of tax can be transferred toother groups (Case, Fair and Oster 2014). The impact of any imposed tax and distribution of theburden is termed as tax incidence.Answer iiEffect of any proposed tax depend on demand, supply conditions and their respectiveelasticity. Therefore, implementation of any tax and its overall impact is an important part ofeconomic lesson. The incidence of taxation is studied in the economic exercise on demand,supply elasticity and its application (Ganset al.2015).Government usually tax an activity that that harmful for the society to restrict suchactivities and subsidize activity that benefits the society. Consumption of sugar or sugarybeverages is harmful for health. Excessive consumption of sugary items brings several diseasesand hence lead to an increase in health expenditure (Pindyck and Rubinfeld 2015). In order toreduce such expenditure and ensure a good health, sugary drinks are taxed.NAME AND STUDENT IDPage2
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