What should be taxed – Personal Income or Personal Consumption and why? Provide your opinion based on the case given above. (Minimum 200 words).             

                                                               [5 Marks]

 How may it affect Saudi Economy if an income tax is imposed in KSA?  (Min 200 words)?       [5 Marks]



 In each of the following cases, determine how much GDP and each of its components is affected?            [5 Marks]  

A .Ahmad spends $300 to buy his dinner at the finest restaurant in Boston.


B. Abdul spends $1500 on a new laptop to use it in his software company in KSA.  The laptop was built in China.  


C .Jane spends $1200 on a computer to use in her editing business.  She got last year’s model on sale for a great price from a local manufacturer.


D .General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.