Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
5th Edition
ISBN: 9781337192712
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 6.11P
To determine
The economic developments restoring
Concept Introduction:
Market equilibrium- The
Market clearing price- The price at the market equilibrium is known as the market clearing price as any shortage or surplus existent at other prices are cleared or eliminated at this price.
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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.
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Chapter 4 Solutions
Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
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