Among Adam Smith's contributions to economic thought, was his Canons of Taxation.

(i) State and explain Adam Smith's FOUR Canons of Taxation.

(ii) Do you consider that these Canons are useful for analysing the taxation system in

Ireland today? Justify your answer.

(b) Outline possible positive and negative economic consequences of a Government Current

Budget Surplus.

(c) You are the economic advisor to the Minister for Finance. The Minister is considering raising

tax revenue through indirect taxation. Discuss the economic advantages and economic

disadvantages of such a policy.

(i) Explain why international trade is essential for the Irish economy.

(ii) Has Ireland, in recent years, tended to have a surplus or a deficit on the Balance of

Payments Current Account? Outline the economic consequences of this situation.

(b) State and explain how imports into the Euro-zone would be affected by each of the

following developments:

(i) the US dollar rises in value against the euro;

(ii) employment within the Euro-zone increases.