What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 words).
How may it affect Saudi Economy if an income tax is imposed in KSA? (Min 200 words)? [5 Marks]
In each of the following cases, determine how much GDP and each of its components is affected? [5 Marks]
A .Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.
B. Abdul spends $1500 on a new laptop to use it in his software company in KSA. The laptop was built in China.
C .Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great price from a local manufacturer.
D .General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.