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Reply 20

john williams

Seamen Staines

Now that's not just a little demanding!

Although when they wrote the questions, they probably would have thought of some answers!

Reply 21

russ

8 Lucky number

With spain - possibely more people smoke in spain i.e. consumption is higher. Also consider the Laffer curve maybe, as it shows relationship between tax rate and tax revenue.

Whats a Laffer curve?

Reply 22

annabelle

russ

Whats a Laffer curve?

This should explain things:
http://www.investopedia.com/terms/l/laffercurve.asp

Reply 23

Sarahhuges

So you would expect spain to not be maximising its possible tax revenue from indirect cigarette tax then? therefore graphically the tax rate of spain would be to the left of the laffer curve optimum (generally 50%) which means that they arent getting as much as they could? could someone please confirm this?

Also can someone please explain to me the advantages and disadvantages of using regulation pls, ive tried the ocd as textbook but aint found anything so any help would prove particuarly useful,
thanks
Sarah

Reply 24

chandni

check some of ur notes from the as market faliure module...thats where I found most that type of stuff.

Reply 25

john williams

russ

Whats a Laffer curve?

Basically when govt raise taxes to increase revenues when in fact it will lead to lower revenues as it will act as a disincentive to work and invest, so the right balance must be found which is what the curve shows. But like with all Economics its just crap theories which dont really work/cant be calculated.

Reply 26

Seamen Staines

You dont know the laffer curve and you're about to take an A level exam. Either you've just not been taught it, or I really feel sorry for you.

Reply 27

john williams

Seamen Staines

You dont know the laffer curve and you're about to take an A level exam. Either you've just not been taught it, or I really feel sorry for you.

Not really as we havent been taught it either, i just know it cos iv read through my revision book, having said that we'v not been taught much! Plus its not even on the ocr syllabus so you dont need to know it.

Reply 28

tangoman444

Can someone explain to me in extract 1, what does the info tell us about the comparative price elasticities of demand for cigs in the diff countries? I dont really get how to work this out with the data given.... cheers!

Reply 29

annabelle

tangoman444

I know, the data given isn't really enough, whcih I suppose could be an evaluative point if required. The data merely suggests elasticities for each country on the basis that the countries are compared. I mean, you wouldn;t really be able to say if Spain was elastic, if you didn;t have the duty and revenue figures for lets say the UK. Does that make sense?

Reply 30

spurs123

just a quick question....are u guys going to only learn the pre-released stuff and the specific parts of the syllbaus from which it relates. or are u going to also learn the stuff on the europe syllabus such as transtition economies...and enlargement...which has no real chance of comin up?

Reply 31

Economist

spurs123

Ive gone through the syllabus but only glanced over the transition economies section and am now working on the pre-release material.

Reply 32

john williams

spurs123

Funny you should ask that as iv just read over the transitional notes but havent learned it in much detail, i didnt even realise there was no chance of it coming up, having said that knowing my luck it probably will.

Reply 33

maximusmak

got two questions that id like to put

1) could someone explain to me what the laffer curve is, cuz i never heard of it before untill i read the tutor for you thing and draw the thing for me aswell, explainin it!! (which is really useful i think...just if they could also answer the questions they asked that would have been a bonus, or am is that asking for a little tooooooo much!!! actually its worth asking isnt it)

2) what other tobacco products that are sold which are other than cigarettes??? cuz one you can exactly compare excise duty per packet of 20 cigarettes and the revenue from excise duty on tabacco products, or can you???

btw, any1 who has actually answered the questions on tutor2u if your feelin genourous please forward it to me and the rest of the ppl, as it might or should indeed help us, unless, obviously your kinda tight even with studies,

Reply 34

maximusmak

john williams

what are the transitional notes, damn im well behind schedule!!!! this aint soundin too well

Reply 35

john williams

maximusmak

what are the transitional notes, damn im well behind schedule!!!! this aint soundin too well

The laffer curve is basically what i said above. Notes on transitional econ. joining from Eastern Europe..if u have the Bamford book.

Also does anyone have any eval points on Tax Harmonisation...regarding +ve or -ve points.

Reply 36

chandni

Ok we never got taught this laffer curve business but I think i'm past caring what will happen will happen!!!

Reply 37

annabelle

john williams

Use that tutor2u revision guide that was posted on here...the last few pages are all on tax harmonisation.

Reply 38

annabelle

maximusmak

Use that link i posted on here about the laffer curve.

I don't really understand your second question. Can you exlain?

Reply 39

Sarahhuges

Anyone think that centrally planned economies will come up? Ive revised CAP, SEM EMU, EU Pros and cons of Tax, Subs and Reg anything major which is missed?
Thanks!
Sarah