What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 words).
[5 Marks]
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.
