Economics question and answer Essay Example for Free

Economics question and answer Essay Economics: question and answer Introduction Question 1            War unrest in Middle East has negatively impacted on the price and quantity of oil in the market. The expectation of war from Syria and Iraq to spread to Middle East countries cause fear of possible shortages of supply as people may possibly do without oil. As a result people will buy more to store in preparation for future shortages. As the demand increases, price of oil goes up as people anticipate war unrest in the near future. When eventually the war sets in oil production is disrupted but people do not demand more since they had enough to cushion the scarcity (Kemp, 2013). In the graph illustration below, assuming the market was initially at the equilibrium. Since scarcity is expected in future people will by more (high demand) to spare for future. As the demand increase from 150 units to 350 units, the price also increases accordingly from $0.25 to $ 0.35. Graphical illustration 3411220146431000 Figure SEQ Figure * ARABIC 1: when people expect civil unrest the demand is high but and the prices go up. Question 2            Car and petro are complimentary good that are consumed together. Taxation on one of the complimentary products greatly influences the price of the other good. The increase in price of one good causes a corresponding decrease in the price of the other good and vice versa. For instance, taxing petrol increase its price, leading to high demand for high fuel efficient cars. Increase in demand for high fuel efficient cars results to increased price and vice versa. On the other hand increase in price for petrol leads to decrease in demand for low fuel efficient cars thus leading to their low price (Dwivedi, 2012). Many thus will buy high fuel efficient cars Graphical illustration Figure SEQ Figure * ARABIC 2: price of petrol increases when tax is imposed Figure SEQ Figure * ARABIC 3 this graph shows increase in demand and price for high fuel efficient when the price for petrol increases due to taxation Figure SEQ Figure * ARABIC 4: the graph show decrease in demand for high fuel efficient cars when the price of petrol goes up Question 3            The fact that suppliers cannot sell live chicken directly to consumers coupled with the fear of mass death due to anticipated chicken flu results to high supply in the market. When supply increases beyond demand the price falls down. In addition since the health official are the only buyers a monopolistic competition comes into play since the price for chicken is not control by the market forces of demand and supply (Taylor, Weerapana, 2012). The equilibrium the will shift to the right. Graphical illustration lefttop Figure SEQ Figure * ARABIC 5 : Excess supplies of chicken in the market results to low demand and eventually falls in price. The farmer expects future unfavorable condition due to outbreak of chicken flue. Question 4 Price elasticity of demand is the measure of responsive of the quantity demanded of a product to price change with other factors held ( Dwivedi, 2012). Price Elasticity of Demand (PEoD) = percentage change in quantity demanded (%ΔQ) à · percentage change in price (%ΔP) %ΔQ = 35 -50 / 50 Ãâ€"100 = -30% %ΔP = 8 -6 / 6 Ãâ€"100 = 33.33% Therefore, PEoD = -30 %/ 33.33% = -0.900            As economists we are not interested with the negative sign of our price elasticity of demand and therefore we take the absolute value. Therefore, the price elasticity of demand when price increases from $6 to $ 8 is 0.9. Interpretation.            For the above case the demand for the good is price inelastic. This means that the demand for the product does not respond highly ton price changes. As evident in the computation, an increase of price by 33.3 % of the price results to a corresponding decrease of quantity demanded by 30%. The demand thus is not very sensitive to price changes. Question 5(a)            Externality is an effect or a cost of the consumer behavior that may not be borne by the consumer but by the society. This mean s that the effects are caused by the consumer but the society bears the consequences. Tobacco smoking is among the activities that cause externalities. For instance narcotic in tobacco is believed to cause lung cancer to smokers. However the external cost of providing medical care to smokers is borne by non-smokers, by smokers and the government. Additionally environmental pollution due to smoking is borne by the family members of the smoker’s friends and even non-smokers strangers. Moreover, smoking has environmental externalities that involve deforestation to create room for tobacco growing. Agrochemical used in tobacco production also adds to environmental pollution and degradation. Cigarette wastes are common in all cities, sidewalks and around homes. Although majority of these wastes are biodegradable, the filter and plastic wr appers and remain in the environment for long and the consequences of such pollution are felt by the larger society. 5(b)            The Australian government in its attempt to control and minimize the external costs resulting from tobacco imposes high tax on tobacco. High taxation on tobacco increases the cost and as a result the demand for tobacco decreases. The tax imposed is transferred by producers to the consumers (smokers). When this happens, the demand curve will shift from right to left as indicated in the graph. Figure SEQ Figure * ARABIC 6: (Tax increase the price for tobacco leading to low demand and eventually low consumption) Question 6            When entry barriers are eliminated in the market huge number of firms enters the industry resulting to excessive supply of commodities. In a market where entry barriers are limited the price of commodities is determined by the market forces since no firm has control over the market. Excessive supply that is created results to low prices of goods and services offered. In response the price the price goes down due to competition from other firm. As a result, the profit that firms were making initially decreases due. Graphical illustration 1627833top00 Question 7            Oligopolistic market structures is a type of market where by small number of larger firms control the market jointly. The firms trade in almost similar goods. Oligopolistic firms do not engage in price competetion (Vives, 2001).Basing our argument on the game theory; where the actions one firm depend on those of other firms, it is evident that when for instance one firm lowers its price compared to other firms, customers will be attracted by the lower prices resulting to other firms making economical loss in their operation. In response to this the other will lower their price slighted below the initial firm eventually attracting the customers. The other firms in the market will make loss and eventually respond by making their prices much lower compared to other firms. This process continues until the firms sell at economically a low price that is illustrated by kinked curves (Vives, 2001).There to remain competitive and make profit do not engage in price competiti on. Alternatives to price completion            Oligopolistic firms compete by using alternative modes such as advertisement, product differentiation and barrier to entry in the market. Oligopolistic firms undertake a vigorous advertisement of their products both in national and international levels. Advertisement is made to make potential customers aware of the existence of the product in the market and the good qualities associated with such good and services (Taylor Weerapana, 2012). Advertisement is carried out through mass media and product promotion. In addition oligopolistic firms constantly differentiate their products in terms of quality and always struggle to come up with new products design that outshine those of competitors. In the recent era product differentiation has been enhanced by ever growing technology and innovation. Since oligopolistic firms compete in almost similar goods and services coming up with new products with good qualities gives a firm advantage over its market rivals. For instan ce phones manufacturing firms have constantly developed phone with new applications to remain competitive.            Furthermore, the firms create market entry barriers to new firms, a strategy that ensures that the existing share of market. The common market barriers include the patent rights, important government franchises and the existing economies of scale. These barriers ensure that the market is not flooded by many firms that in the long run may reduce the existing firms’ share of the market control. References Dwivedi, D. N. (2012). Microeconomics. New Delhi, India: Pearson Education/Dorling Kindersley. Kemp, G. (2013). War with Iran: Political, military, and economic consequences. Lanham, Maryland: Rowman Littlefield Publishers Taylor, J. B., Weerapana, A. (2012). Principles of microeconomics. Mason, OH: South-Western Cengage Learning Vives, X. (2001). Oligopoly pricing: Old ideas and new tools. Cambridge, Mass. [u.a.: MIT Press Source document

The New, Old Entertainment Essay -- Computers Technology Essays

The New, Old Entertainment Imagine a world where no one goes outside for a neighborhood soccer game, computer games are the closest thing to activity and the only social interaction comes in the form of online gaming. Now, think to your self is this actually a far fetched idea? The sad reality is that to thousands of what researchers from the Center for Disease Control call â€Å"tweens†, this is their daily life: go to school, do homework and jump on the computer or various other gaming systems. In modern America children seldom go outside to simply enjoy the pleasures of physical activities. The Center for Disease Control noticed this very problem and brought it to Congress in order to help get funding to prevent obesity which is becoming an epidemic. It is from this that the â€Å"Verb† campaign began in June of 2002. The Verb advertising campaign draws children in by appealing to their senses of Ethos, Logos, and Pathos; moreover, the advertisement successfully demonstrates to their audience that physical are worthwhile Furthermore, since this advertisement campaign was brought about through Congress, it contains valid evidence and support for its arguments. The Center for Disease Control used many tests to see what youth are actually interested in. Knowing these children better than nearly any other researchers allowed them to pull on the heart strings of America’s youth, and encourage a change in activity levels. The audiences within these advertisements are youth somewhere in between the years of nine and thirteen. Yet, they are not the sole targets, so are there mothers encouraging them to motivate their youth. The purpose as written within this article is to encourage youth to â€Å"Just get out there. Anytime. Anywhere†. Another... ...he emotional appeals making the intended audience desire to participate in any sort of activity. The credibility of this ad makes us know that the activities can not harm us. The logic reminds us how important it is to workout and be involved with the sports of any caliber. The pathos makes us feel the desire to participate to be out there and to be one of the thousands who are having fun. So now all everyone must do is to keep in mind that video games are fun but there is a great big world out there and it wouldn’t hurt anything to go and enjoy it. The commercials with children all playing inside should not be a reality, rather it should be the fantasy. Hopefully, the children of tomorrow will once again be seen playing soccer until their Mother’s flash the front porch for them to come in, and the video games of today will be pushed to the backs of their closets.

Effects of Mass Media Essay

What were the major developments in the evolution of mass media during the 20th century? The major developments in the mass media during the 20th century include electronic and digital communication. The first electronic device use for communication was the telegraph, which feature dot-dash signals. Thanks to the telegraph, people did not need to use transportation to deliver a simple message. With the telegraph a message was received in a matter of minutes. The telegraph was the foundation to many other electronic devices like the radio, fax machine, and the cell phone. With the digital era, communication has transformed our way of life. Cable TV and the internet have evolved so quickly that some traditional media have (like the newspaper) have lost their control over information. Other traditional media are also losing ground thanks to the development of emerging media. Media sites like Facebook, YouTube, and Tweeter are attracting more audience than traditional media. Facebook alone has over 1 billion users worldwide and its still growing. With new technology been develop every day, people are more connected than ever before, because of this, business like the post office are losing money every day because people no longer need to write letters, or mail a check to pay for their bills. News can be broadcast almost instantaneously by anyone with a mobile device. Devises like ipads, smart phones, and laptops allowed people to view anything from magazines, news articles, television shows and movies. Read more:Â  Essay on Mass Media Advantages and Disadvantages Most TVs are now been develop with internet and wi-fi connection, so people have a reason to purchase it. The development of mass media will continue to grow and new ways of information will eventually replace the old ones. How did each development influence American culture? The development of mass media has influence American culture in many ways. Before the development of new age technology, American culture way of communication was oral and written. People rely on books, manuscripts, and word of mouth to get information delivered. Even politicians depended on oral and written communication to get the vote of the people. With the development of the telegraph and eventually the radio, in America, people started moving from a farming culture, into a urban life style, where new industries and economic opportunities beckoned. With the development of digital communication, people started taking control over information. Publishers and TV station began losing ground over the control of information as well. With each development, people began to depend on themselves to get the information, rather than relying on teachers, or storytellers. The internet has allowed our culture to do interact in different ways. You can buy anything online, without leaving the house, you can work from home, take college courses and earn your degree, make a video conference, and many other things that could not be done in the past. There are many advantages to the development of mass media in our culture, but it has also disadvantages. I believe that the internet has made people lazier and less responsible. There are people that instead of going to the market to get food, they prefer to order groceries online to get it delivered home. When it comes to education, some students just search for the easy answers available online, instead of taking the time to do the research.

Foundations of Grammar in Italian

For many Italian language speakers—even for those whom Italian is their madrelingua—the phrase parti del discorso might seem foreign. English speakers know the concept as parts of speech, but its probably a term vaguely remembered from grade school grammar. A part of speech (whether Italian or English) is a linguistic category of words generally defined by the syntactic or morphological behavior of the lexical item in question. If that definition intrigues you, then an introduction to Italian linguistics might be a jumping off point. Suffice it to say that linguists have developed a classification system that groups specific types of words according to their roles. For anyone whose primary goal is to speak like an Italian, perhaps its enough to be able to identify each of the parti del discorso to facilitate learning the language. Per tradition, grammarians recognize nine parts of speech in Italian: sostantivo, verbo, aggettivo, articolo, avverbio, preposizione, pronome, congiunzione, and interiezione. Below is a description of each category with examples. Noun / Sostantivo A (sostantivo) indicates persons, animals, things, qualities, or phenomena. Things can also be concepts, ideas, feelings, and actions. A noun can be concrete (automobile, formaggio) or abstract (libertà  , politica, percezione). A noun can also be common (cane, scienza, fiume, amore), proper (Regina, Napoli, Italia, Arno), or collective (famiglia, classe, grappolo). Nouns such as purosangue, copriletto, and bassopiano are called compound nouns and are formed when combining two or more words. In Italian, the gender of a noun can be male or female. Foreign nouns, when used in Italian, usually keep the same gender as the language of origin. Verb / Verbo A verb (verbo) denotes action (portare, leggere), circumstance (decomporsi, scintillare), or state of being (esistere, vivere, stare). Adjective / Aggettivo An adjective (aggettivo) describes, modifies, or qualifies a noun: la casa bianca, il ponte vecchio, la ragazza americana, il bello zio. In Italian, there are several classes of adjectives, including: demonstrative adjectives (aggettivi dimostrativi), possessive adjectives (aggettivi possessivi), (aggettivi indefiniti), numerical adjectives (aggettivi numerali), and degree of comparison adjectives (gradi dellaggettivo). Article / Articolo An article (articolo) is a word that combines with a noun to indicate the gender and number of that noun. A distinction is usually made between definite articles (articoli determinativi), indefinite articles (articoli indeterminativi), and partitive articles (articoli partitivi). Adverb / Avverbio An adverb (avverbio) is a word that modifies a verb, an adjective, or another adverb. Adverb types include manner (meravigliosamente, disastrosamente), time (ancora, sempre, ieri), (laggià ¹, fuori, intorno), quantity (molto, niente, parecchio), frequency (raramente, regolarmente), judgment (certamente, neanche, eventualmente), and (perchà ©?, dove?). Preposition / Preposizione A preposition (preposizione) connects nouns, pronouns, and phrases to other words in a sentence. Examples include di, , da, , con, su, per, and tra. Pronoun / Pronome A (pronome) is a word that refers to or substitutes for a noun. There are several types of pronouns, including personal subject pronouns (pronomi personali soggetto), direct object pronouns (pronomi diretti), indirect object pronouns (pronomi indiretti), reflexive pronouns (pronomi riflessivi), possessive pronouns (pronomi possessivi), (pronomi interrogativi), demonstrative pronouns (pronomi dimostrativi), and the particle ne (particella ne). Conjunction / Congiunzione A conjunction (congiunzione) is the part of speech that joins two words, sentences, phrases or clauses together, such as: quando, sebbene, anche se, and nonostante. Italian conjunctions can be separated into two classes: coordinating conjunctions (congiunzioni coordinative) and subordinating conjunctions (congiunzioni subordinative). Interjection / Interiezione An interjection (interiezione) is an exclamation that expresses an improvisational emotional state: ah! eh! ahimà ¨! boh! coraggio! bravo! There are many types of interjections based on their form and function.

Lexicology - Definition and Examples

Lexicology is the branch of linguistics that studies the stock of words (the lexicon) in a given language. Adjective: lexicological. Etymology From the Greek lexico- -logy, word study Lexicology and Syntax Lexicology deals not only with simple words in all their aspects but also with complex and compound words, the meaningful units of language. Since these units must be analyzed in respect of both their form and their meaning, lexicology relies on information derived from morphology, the study of the forms of words and their components, and semantics, the study of their meanings. A third field of particular interest in lexicological studies is etymology, the study of the origins of words. However, lexicology must not be confused with lexicography, the writing or compilation of dictionaries, which is a special technique rather than a level of language studies ...The essential difference between syntax and lexicology is that the former deals with the general facts of language and the latter with special aspects. . . . Syntax is general because it deals with rules and regularities that apply to classes of words as a whole, whereas lexicology is particular because it is concerned with the way individual words operate and affect other words in the same context. Although borderline cases do exist in both lexicology and syntax, e.g., in the case of grammatical or function words, the distinction between the two levels is fairly clear.  (Howard Jackson and Etienne Zà © Amvela, Words, Meaning, and Vocabulary: An Introduction to Modern English Lexicology. Continuum, 2007) Content Words and Function Words [T]eachers of English have customarily distinguished between content words, like snow and mountain, and function words, like it and on and of and the ...  Lexicology is the study of content words or lexical items.  (M.A.K. Halliday et al., Lexicology and Corpus Linguistics. Continuum, 2004) Lexicology and Grammar Both grammar and lexicology involve us in an indefinitely large number of superficially different units. In the case of grammar these are phrases, clauses, and sentences; in the case of lexicology the units are words, or more precisely . . . lexical items. It is typical of grammar to make general and abstract statements about the units concerned, showing a common construction despite formal differences. It is typical of lexicology to make specific statements about individual units. In consequence, while the grammar of a language is best handled in chapters devoted to different types of construction, it is normal to deal with the lexicon of a language in an alphabetical dictionary, each entry devoted to a different lexical item.  (Randolph Quirk et al., A Comprehensive Grammar of the English Language, 2nd ed. Longman, 1985) Lexicology and Phonology [I]t may be thought at first sight that phonology does not interact with lexicology in any significant manner. But a close analysis will reveal that, in many cases, the difference between two otherwise identical lexical items can be reduced to a difference at the level of phonology. Compare for example the pair of words toy and boy, feet and fit, pill and pin. They differ only in one sound unit (the position of which has been [italicized] in each word) and yet the difference has serious consequences at the level of lexicology.  (Etienne Zà © Amvela, Lexicography and Lexicology. Routledge Encyclopedia of Language Teaching and Learning, ed. by Michaà «l Byram. Routledge, 2000) Pronunciation: lek-se-KAH-le-gee

Procter and Gamble vs Peta - 588 Words

â€Å"What’s that?† you wonder as you look out your window. A small group of people is gathered on the sidewalk at the end of the wisteria gardens in front of the main headquarters of Procter Gamble. If you squint, you can see they’re holding signs, but the only text you can make out is the word â€Å"PETA† in big letters across the bottom. â€Å"Just great,† you think to yourself. People for the Ethical Treatment of Animals, the animal-rights group more commonly know by the acronym PETA, raises more than $25 million a year from its 1.6 million members and supporters. PETA not only campaigns for animal rights but also funds less known animal-rights groups to engage in activism. PETA is extremely adept at organizing public campaigns and mobilizing†¦show more content†¦Their tactics, denounced as mob rule by some in the medical research community, included hate mail, malicious phone calls, death threats, fireworks, a pedophile smear campaign, car vandalism, arson attacks, and finally the theft of the remains of a relative of the farm owner from the churchyard cemetery. It is clear that PETA will do anything to achieve its goals. Procter Gamble (PG) does not use animals to test the safety of its cosmetics, shampoos, detergents, cleansers, and paper goods; it does, however, use animals to test the safety of new drugs, health-care products, and products intended for use on babies and children. Nonetheless, PG still draws protests from PETA in the form of PETA’s â€Å"Died† advertising campaign, based on PG’s best-selling laundry detergent Tide. The â€Å"Died† ad shows a woman holding a box of â€Å"Died† detergent with the words â€Å"Thousands of Animals Died for Your Laundry† boldly written on the box. PETA is urging consumers to boycott all PG products until the company ends all forms of animal testing. From PG’s perspective, eliminating animal testing altogether could compromise safety, as testing is critical to producing safe products for its customers. PG has to know, for example, that a product will not cause injury if children accidentally swallow it or get it into their eyes. Furthermore, in the event that a productShow MoreRelatedAnimal Testing : Cosmetic Manufacturers1375 Words   |  6 PagesMarla Donato from the Chicago Tribune states, two of the largest manufacturers Avon Products and Revlon recently announced a permanent end to all animal testing by their companies. Mary kay announced a temporary moratorium on practice, and Procter and gamble unveiled a $450,000 grant program to investigate alternative research methods (Donato par.1). If there is so much being done to end animal testing, why do some major companies still insist on using this method? The reason for this is simply

Responsible tax as corporate social responsibility - Free Samples

Question: Discuss about the Responsible tax as corporate social responsibility. Answer: Introduction: Definition: In the process of continuously looking to improve, the quality of products and services by implementation of innovative and effective methods is the main objective of research and development. Research and development, here in after to be referred to as RD, is the works and efforts directed by an organization towards improvement of quality of products and services. Tax implications: There are huge tax incentives for expenditures on research and development by business organizations. The tax incentives include deduction of capital as well as revenue expenditures incurred for scientific research and development initiatives. However, the tax incentives and implications are different for small and large businesses. Tax incentives for small businesses: Small businesses are allowed to claim tax deduction up to 125% of the expenditures incurred on scientific research and development activities for eligible expenditures provided the small businesses claim such expenditures in their tax returns. In some cases small business and companies can claim deduction up-to 175% of the expenditures incurred on scientific research and development initiatives (Muller and Kolk 2015). In order to motivate small businesses to spend on RD activities the Income Tax Assessment Act, 1936 provides the benefit of tax offsets. Small businesses with turnover less than $20 million per annum will be able to claim tax 43.5% refundable tax offset RD expenditures. However, these expenditures must be incurred by eligible entities to claim the tax offset benefit. Spending on Research and development statistics The small business plays an important role in the Australian economy. It provides almost one third of the production and the half of the employment in the private non-financial sector. In order to stay competitive and profitable the small business makes substantial investment in the research and development. The figure provided in Appendix 1 shows the details of implied subsidy rates for different countries. It can be seen that the implied tax subsidy rate of the small profitable business is more than the large profitable firm. The Law: The law relating to RD expenditures for business entities in Australia has seen a transition from research and development tax concessions to the incentives for research and development expenditures incurred by business entities. The Business entities prior to July 01, 2011 were allowed to deduct 125% of the total expenditures incurred for RD purposes at the time of filing of income tax return. In addition to this, the business entities even were allowed to claim deduction up-to 175% in some cases for expenditures that are eligible for such purposes (Yigitcanlar et al. 2017). The tax concession of 125% and 175% respectively for depreciating assets used for the purpose of RD continues even after July 01, 2011 for those entities that have invested in depreciable assets prior to July 01, 2011. The tax concession of 125% and 175% for eligible expenditures were provided in Division 3A of Income Tax Assessment Act, 1936. The Tax Law Amendment (Research and Development) Act 2011 has repealed the tax concession provisions. Sections 73A to 73Z containing the above provisions have been repealed subsequent to the Tax Law Amendment Act 2011. The amendment has brought tax incentives for expenditures incurred on RD to repl ace the RD tax concessions. The tax incentives brought in by the above amendment allows business organizations to use the benefit of tax offsets. The tax incentives to allow tax offsets have been introduced to encourage companies, especially small companies. The RD tax incentives introduced post July 01, 2011 has two-core concepts two it. These two core concepts of tax incentives are as following: Refundable tax offset: For certain eligible expenditures in connection with the research and development activities, an entity will be allowed to take 43.5% refundable tax offset for entities with turnover less than $20 million in a year. Thus, the small business organizations with turnover less than $20 million per annum will be allowed to take 43.5% refundable tax off-set for RD expenditures which are eligible for the tax offset purpose. Non-refundable tax offset: For all other entities a non-refundable tax offset of 38.5% will be allowed for expenditures of research and development. The small businesses will also be allowed to carry forward the unused offset amount in future income years. The small businesses are allowed to take RD tax offset of 43.5% whereas companies with RD expenditures in excess of $100 million for an income year will only be allowed a reduced tax offset of 30%. The tax rules: The Tax Amendment Act 2011 (Research and Development) the RD tax concession provisions have been repealed. However, it is important to restate that the benefits of tax concession provisions of section 73A to section 73Z of the Income Tax Assessment Act, 1936 can still be used by business entities if the necessary conditions are fulfilled by the business entities (Shin 2017). Thus, if the expenditures in respect of RD activities have been incurred by an entity prior to the introduction of RD tax incentives then the organizations will be allowed to avail the benefit of RD tax concession. Thus, if business organizations have incurred expenditures on RD activities before the repealing of RD tax concession, i.e. July 01, 2011, then the organizations will be allowed to use tax concession under the now repealed provisions of section 73A to section 73Z. Establishment of special transitional arrangement: In order to address the situations in the income years when both the RD tax concession provisions and RD tax incentive provisions special transitional arrangements have to be made. Research and development tax incentives: As already mentioned that subsequent to repealing of RD tax concessions the introduction of RD tax incentives is mainly to encourage business organizations to engage in research and development activities to improve the quality of products and services. The tax incentives are more incline and beneficial for small business entities and it is proven from the fact that the refundable tax offset of 43.50% is allowed to the business entities with annual turnover of less than $20 million. As for large business, entities the tax incentive is non-refundable tax offset of 38.5%. The current tax offset provision under RD tax incentives that have replaced the tax concession will affect the business entities as following. Group Turnover Company Tax Rate RD Tax Offset Rate Tax Discount Percentage Refundable or Non-refundable Less than $10 m 27.5% 43.5% 16% Refundable Between $10m - $20m 30% 43.5% 13.5% Refundable $20m or more 30% 38.5% 8.5% Non-refundable From the above table it is more than clear that RD incentive which has been applicable since July 01, 2011 is certainly more beneficial to small and medium entities than they are to the large corporations. For small entities with annual turnover, less than $20 million the entities will be taxed at 30.00% with RD tax offset rate of 43.5% with the option of refund. For smaller entities with turnover, less than $10 million the entities will be taxed at 27.5% and tax offset of 43.5% with the option of refund. For large entities with annual turnover of $20 million or more the entities will only be allowed to take tax offset of only 38.5% for the RD expenditures. Legislations: As already mentioned earlier that before the introduction of Tax Amendment Act 2011 (Research and development) business organizations were allowed to take the benefit of tax concessions for expenses of research and development. The tax concession provisions were contained in section 73A to section 73Z of Income Tax Assessment Act, 1936. The Division 3A of the act prescribed the guidelines and rates that are applicable for tax concessions under the act to the organizations incurring expenditures on research and development. However subsequent to 1st of July, 2011, i.e. after the introduction of Tax Amendment Act 2011 (Research and Development) the business organizations have been allowed to take the benefits under RD tax incentives. Thus, whereas earlier the companies and entities were allowed to deduct 125% of RD expenditures while filing the income tax return to reduce the income tax liabilities for eligible expenditures now it has replaced by tax offsets. Small entities have been a llowed to take refundable tax offset of 43.5% whereas large entities will only be allowed to take non-refundable tax offset of 38.5%. Tax Implication RD activities overseas: The above rules and regulations are only restricted to the RD activities carried out within the country. For RD activities carried outside the country an entity will only be allowed to claim such expenditures as deduction for computation of assessable income if the activities are registered and the following conditions are satisfied: The activities are of scientific in nature and has close link with the Australian core activities. The activities in relation to the research and development that have been conducted outside Australia is mainly because such activities were not possible to be conducted in Australia for reason / reasons listed in the legislation. The expenditure has reduced as the expenditure has been incurred overseas, i.e. the expenditures if would have been incurred in Australia would have been higher than the actual expenditure incurred for the activities in overseas. It is important to note here that the expenditures have to be paid in order to be claimed as deduction to ascertain the taxable income of an entity or to offset under the new provisions. Thus, in case the expenditures are incurred but not paid then the RD tax concession or RD tax incentives none of the benefits will be allowed under the Income Tax Assessment Act, 1936. Tax incentive for investors at the early stages: National Innovation and Science Agenda as a part of its program to encourage businesses to invest in research and development initiatives has announced a new tax offset program effective from July 01, 2016. According to the new program the investors will be able to use the benefit of incentives for expenditures which are in the nature of research and development at the early stage of their investments (Farrugia and Gerrard 2016). The eligible investors will be allowed to take the following benefits: Non-refundable tax offset of 20% for the amount of investment subjected to a restriction of an amount of $200000 per annum. Exemption from capital gain tax if the investments are held for a minimum of 12 months and maximum of 10 years. The above tax incentives for early stage investors is one of the many ways to encourage small businesses to invest in research and development activities. The above incentive program has restricted the tax incentive benefit to the eligible investors. The tax offset in the above scheme has been capped at $50000 to ensure that only small businesses are allowed to use the benefit of the above incentive. Conclusion: The small and medium sized entities are generally short on investment hence, they find it difficult to invest huge amount of funds on research and development initiatives. Thus, it is important to encourage the small entities to spend in research and development activities by allowing them tax incentives for such expenditures. The introduction of RD tax incentives by repealing the RD tax concessions was mainly to encourage the small and medium sized entities to invest on RD activities. A refundable tax off set of 43.5% for entities with annual turnover of less than $20 million compare to a non-refundable tax offset rate 38.5% for entities with turnover of $20 million or more is a clear indication that the current tax legislation has been made to encourage the small businesses to invest in RD activities. Reference Farrugia, D. and Gerrard, J., 2016. Academic knowledge and contemporary poverty: the politics of homelessness research.Sociology,50(2), pp.267-284. Muller, A. and Kolk, A., 2015. Responsible tax as corporate social responsibility: the case of multinational enterprises and effective tax in India.Business Society,54(4), pp.435-463. Shin, M.J., 2017. Partisanship, Tax Policy, and Corporate Profit-Shifting in a Globalized World Economy.Comparative Political Studies, p.0010414016688007. Yigitcanlar, T., Sabatini-Marques, J., da-Costa, E.M., Kamruzzaman, M. and Ioppolo, G., 2017. Stimulating technological innovation through incentives: Perceptions of Australian and Brazilian firms.Technological Forecasting and Social Change.