Microeconomics (Book Only)
12th Edition
ISBN: 9781285738307
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 19, Problem 1VQP
To determine
Explain the reasons why no theory perfectly describes the reality.
Expert Solution & Answer
Explanation of Solution
No theory cannot perfectly describe the reality because the main job of a theory is to find why the things in a society are like this or gone like this manner etc. Theory is only a group of principles that lead the real activities in a smooth manner. For example: according to the theory of trade, it explains what it is. But it did not say that how it done by every country. In building a theory, some variables are necessary to be omitted.
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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.
answer
Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.
Chapter 19 Solutions
Microeconomics (Book Only)
Ch. 19.3 - Prob. 1STCh. 19.3 - Prob. 2STCh. 19.3 - Prob. 3STCh. 19.6 - Prob. 1STCh. 19.6 - Prob. 2STCh. 19.6 - Prob. 3STCh. 19.10 - Prob. 1STCh. 19.10 - Prob. 2STCh. 19.10 - Prob. 3STCh. 19 - Prob. 1VQP
Ch. 19 - Prob. 2VQPCh. 19 - Prob. 3VQPCh. 19 - Prob. 4VQPCh. 19 - Prob. 5VQPCh. 19 - Prob. 1QPCh. 19 - Prob. 2QPCh. 19 - Prob. 3QPCh. 19 - Prob. 4QPCh. 19 - Prob. 5QPCh. 19 - Prob. 6QPCh. 19 - Prob. 7QPCh. 19 - Prob. 8QPCh. 19 - Prob. 9QPCh. 19 - Prob. 10QPCh. 19 - Prob. 11QPCh. 19 - Prob. 12QPCh. 19 - Prob. 13QPCh. 19 - Prob. 14QPCh. 19 - Prob. 1WNGCh. 19 - Prob. 2WNG
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