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日四十月三年〇八九一饜公年九十六國民華中 育教經

來以初年年今

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九 七十五去

1980-

中學會考試題預習專欄

經濟

(=A)

明德出版社提供資料

-陳勵德

Economics (22)

K. K. Vong & 1. T. Chan Mill & Dale Press Ltd Public Finance

Distinguish between direct taxes and indirect taxes so as to show their advantagea. Give local examples of each. What would be the probable economic conseguences if heavier taxation is composed in Hong Kong"

A direct tax is the taxation which is paid directly by individuals or companies on whom it is actually levied. The tax burden is exactly hare by the tax payers and the tax is levied on the taxable income of the individuals or companies. Examples of the direct taxes are the Salaries Tax, Profits Tax, Property Tax, Interest Tax, Estate Duty, Licences Fees and Rate in Hong Kong.

The Salary Tax is charged on any individual who in in receipt of income from any employment in Hong Kong. It is chared on a sliding scale from 5% to 30%, using the progressive tax rate. The taxable income is derived after deduction of various allowances which vary with the individual and family circumstances.

Profits Tax is charged on any profita derived from the trade and business in Hong Kong. The standard tax rate of a corporation is 17% where the unincorporated"ĥusiness is a standard rate of 15%.

Interest Tax is charged at the standard rate of 15% on interest arising in or derived; from Hong Kong. It in the tax which levied on the interest derived from any debenture, mòrtgagë, bill of sale, deposit, loan, advanțe or other indebtedness,

Property Tax is charged at the standard rate of 15% on 80% of the accessable current market rental value. Every owner with a property in Hong Kong is necessary to pay this amount of payment.

Besides, Estate Duty in the duty imposed in a dead person person's property, money or estate. Licence Feen in levied on all business except the non-profit, making business and some charitable organiza- tions. Rate in charged as a certain percentage of the estimate yearly letting value of land or a property held or occupied by a person.

An direct tax is the taxation which levied on gonds and servichy. It is usually levied on expenditure and is sometimes cálfød outley taxea.

Examples of the indirect taxation in Hong Kong are the Custom Duties, Excise Duty, Betting Duty, Stamp Duty, Entertainment Tax und Hotel Accommodation Tax.

Custom Duties are the taxes which are charged on four groups of imported

IR OTA

種難以炷式九

全九點售 分的計元七千座九年十

一顆 十鹹外境八載闖十的二鹟 之一九,上九陷置加年卷幣一七點言 百八八年 珊的高創司嗨

(7) Direct tax can directly

commodities -- Älchoholic liquors, tobacco, certain

hydro-carbon viln and methyl.

Excise Duties are the

taxes which are charged the above four groups of locally manufactured commodities,

Stamp Duty is modelled on

the British system which imposes fixed duty on certain classes of documents and

an ad volorem duty on others.

Betting Duty is the duty on horse hetting and on cash sweep contribution. The operation of Retting Duty is solely conducted by the Royal Hong Kong Jockey Club.

Besides, the Entertainment Tax is charged on the prices

of admission to race meetings and cinemas. The Hotel Accommodation Tax is imposed on hotel and guest houses. The. Royalties and Concession are the payment which the government received from public utility companies such as bus company, electric company, etc. Which enjoy Monopolistic franchises,

Compared direct taxation with indirect taxation, several distinctions can be drawn:

(1) Direct taxation is levied

on wealth and income where indirect taxation is

levied on expenditure.

(2) Direct taxen are usually

charged by the government. The taxes are directly paid. by the tax payers to the Gov't. Indirect taxas are usually borne by the consumers and are not paid by themselves directly to the government. but through somebody else.

(3) Direct taxes are based

on the Ability-To-Pay Principle. It means that people should be taxed accor- ding to their income level, The higher,income group should pay more Indirect taxes are justified by the Benefit Principle. It means that those who get satifaction by consuming goods and services should be taxed accordingly.

(4) The incidence of indirect

tax may be on the buyer

or seller, depending on the elasticity of demand of the commodity on which the tax

has been imposed, If the commodity is more elastic,

the tax burden would be easily shifted to the buyer. It is easier to determine the

incidence of a direct tax but

it is difficult to determine the incidence of an indirect tax especially when the taxed goods are elastic in demand.

(5) Indirect taxes are

usually regressive. The lower income group suffer from it because they bear the majority of the tax burden. If the prices of the commodities are raised, general price level will be bid up and it will be easy to cause

inflation problem,

(6) Direct taxes are

generally in progressive tax rate. It is said that indirect taxes can viden the gay between the rich and the poor people with large familien. Therefore, direct tax can achieve more oven distribution of wealth in the economy.

influence the income and individual or a family. Since

more taxes are required to pay

in respect to higher income,

it may discourage individuals from spending or seeking additional income.

(8) It is easier to estimate

the amount of revenue that can be collected from direct taxes. It is difficult to compute the exact amount that would be yield by the indirect taxes, (9) Direct taxes may cause

harm to the working incentive, investment incentive and the saving incentive of the firms and individuals,

(10) Tax evasion and tax

avoidance are more frequent and much easier for Indirect taxes. Since then, the administration cost of indirect taxes is relatively heavier than of direct taxes.

The following are the probable economic consequences of imposing heavier taxation in Hong Kong:

1. High salaries tax reduces

taxpayers' disposable income for consumption, and discourage peoples' incentives to work overtime and to seek for promotion,

2. Heavier profits tax

reduces businessments* savings and net profits. Loanable Tünds in the ecnoamy vill fall, Rnd investment becomes

expansive. Economic

activities vill shrink as a result.

3. Beavier indirect taxes would lead to arise in prices of necessities. Thus ít results in inflation which cause harm to the competitiveness of Hong Kong'a exports.

4. In general, heavier

taxation leads to greater

government revenue, but

discourage foreign

investment flowing to

Hong Kong.

1980

中學會考試預習專欄

附加數

明德出版社岑惟彦提供資料

Additional Mathematice (22)

Ç. Y. Shup

Mill & Dale Press "Legi

Solutions to Exercise 11 1(a) 2

*

2

* K radiano 180 3.1416

radians 90

- 0.0349 radŝamų (ang),

When is small,

vind - 8

.*. sin2* = 0,0349 - (Anu) (b) sin62" - sin98o

-2cos(

L

.

n

Min(62-54")

*

2cos60" sin2"

- 2 x 4 × 0,0349

0.0349

* (Ana)

2. Let y

then

13

X -x

+X

2x (2-x

2.4 22

, A COBstant

2x(a°ur°)•xa,x°)

3. Gradient of the curve

3 2

The

value of a are:

−1 48 40.

7. (1+x)"

(AUS)

+

+

n(n-1) 2

3!

n(-1) (n-2)3

- 1 + 1 + 18

+

1.4 6 6.12 1-4-7 6.12.18

+

Equating each term,

nx

----

(ADS)

y =x*-**-x+1 at (x,y) is

2

dy dx

Gradient at (-1,0) is 3(-1)2~2(-1)-1 -4.

Equation of the tangent at (-1,0) is given by

y=0. 4(x+1)

y = 4x+4

When the tangent meets

the curve again,

4x44

3.2

- X ́-I -X+1 3 2

(x+1)(x+1)(x−3)

x

-i or 3

y = 0 or 16

the tangent meets

the curve again

at (3, 16).

(cose+isine)

cosp-ising

cis20

चनका

- cis (28-(-6)]

* cin(28+4)

cos(20+f)+isin(20+6)

(Ang)

modulus argument -

1

20+6

(AMR)

dx

5. Let I

1

Now,

x

- 2aine

When x 1, #

When I

+

1

X**

6n

(F)

6.12

*

(2)

n(n-1) 2. 1-4

Substituting (1) into (2):

n(n = 1) x (6

n(n-1)

72 4 72

720

12

and x 話

Z

- 1⁄2 (Ans)

8. Let the equation of the tangent by y = mx-C.

Since it passes through

the point (4,3),

then

3 9(-4)+C

→ C- 3+4m

the tangent is

y = mx+(3+4m)

.. (1)

This line meets the circle

2 2

x y -5 Ú.

+(x+4x+3)2 -5

2

I

2

22

2

2 **+m ̈x ̄+16n ̈+9+8m ̄x

+6mx +24m-5 = 0

2 2

2

(1+m2)x2+(6m+8m2)x

+16m2

-

Since this line is R tangent, the roots are equal,

•*. (6m+8m2)2-4(1+m2).

(16m2+24m+4) » 03

2

· 4 (9m2+24m3 +16m*)

−4 (16m2+24m+4+16m2

+24m3

2

+47

2

K

0

* = -2 or

..2 11

(m+2)(ttm+2)

dx = 2coyê do

the equation visi tangents

i.e. y+2x+5

th

2cas@de

2coat de

2cost

and

y

(Ann)

Since the roots are real,

(−3n)°~4(3)/a^~r−3) ♪ u

302-4a2+in+12 ► 0

i.e. 11y+2x-25 =

Alternative" me:

method:

Because of the circle = Distance from the centre. to point of contact ~

From (1),

the tangent in

mx-y+3+4m

*; m(0)=(0)+3+4¤

(1)

15./02.1

3+4m »

.*. 9+24m+16m“

2

i.e. 11m+24m+4 = 0

Proceeding as before from (2), we have the same result.

2

-n+4a+12 2 0

"

i.e. a ̃-4a-12 6 0

(a−6)(x+2) 40)

-2

G

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