PRODUCT PAPER

Prepared to fulfill English courses

Supervisor:
TAQIYUDDIN, M.Pd

Arranged by:
Muhammad Hamza (22612052397)

DEPARTMENT OF ISLAMIC ECONOMICS AND BUSINESS

SHARIA BUSINESS MANAGEMENT STUDY PROGRAM
STATE ISLAMIC RELIGIOUS HIGH SCHOOL
SULTAN ABDURRAHMAN
RIAU ISLANDS
2023
 FOREWORD
Alhamdulillah, all praise and gratitude to Allah SWT, who has given me
grace and guidance and understanding so that I can complete the "English Paper
About Products" well. This paper was prepared based on sources I got from books
and the internet in the form of journals.

I don't forget to say thank you to my lecturer, namely MrTaqiyuddin, M.Pd

and we as the authors of this paper realize that this paper is still far from perfect.
Therefore, we apologize to those concerned. We hope to receive positive and
constructive criticism so that we can be better in the future and hopefully this
paper can be a reference as an explanation and hopefully it will be useful for all of
us.

We will gladly accept all criticism and suggestions from readers to

improve this paper.

Bintan, 31 October 2023

Writer

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 LIST OF CONTENTS

FOREWORD..................................................................................................i

LIST OF CONTENTS....................................................................................ii

CHAPTER I INTRODUCTION

A. Background...........................................................................................1
B. Formulation of the problem..................................................................1
C. Problem Objectives...............................................................................1
CHAPTER II DISCUSSION
A. Main Functions of Taxation..................................................................2
B. Price stability in achieving economic goals..........................................2
C. Central Bank Control............................................................................3
D. Considerations in Product Line Management.......................................3

CHAPTER III CLOSING

Conclusion........................................................................................................5

BIBLIOGRAPHY...........................................................................................6

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 PIG
INTRODUCTION

A. Background

Gabriel Mangano's statement reflects a critical view of the role of

governments and central banks in managing the economy, especially in the
context of monetary and budget policy. In this context, Gabriel Mangano
expressed several important views that reflect his concerns and beliefs regarding
ongoing economic policies.

Gabriel Mangano argues that governments tend to increase the money

supply in the months before elections. This increase is believed to help reduce
the unemployment rate. This statement reflects the view that governments may
use monetary policy to achieve certain political goals, especially in responding
to voter needs before elections.

through his statement, presented a series of critical views and views on

the dynamics of existing economic policies, highlighting the interrelationship
between political factors, monetary policy and government budget management.

B. Formulation of the problem

1. What is the main function of taxation?
2. Is price stability more important than other economic goals?
3. Should the central bank be controlled by (unelected) bankers and not
by an elected government?
4. What caused the emergence of the 'black' or 'underground' economy?

C. Problem Objectives
1. Explain the main functions of taxation.

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 2. Assess whether price stability is considered more important than
achieving other economic goals.
3. Understand the influence of politics on monetary policy.
4. Know the factors that cause the emergence of the 'black' or
'underground' economy.

CHAPTER II
DISCUSSION

A. The main function of taxation

The main function of taxation is of course to increase revenue to
finance government spending, but taxes also have other purposes. Indirect
customs duties, for example, can be designed to discourage people from
smoking, drinking alcoholic beverages, and so on. Governments can also
encourage capital investment by allowing various accelerated depreciation
accounting methods that allow companies to deduct more investment costs
from their profits, and consequently reduce their tax bills. There has
always been much debate regarding the fairness of the tax system.
Business profits, for example, are generally taxed twice: corporations pay
tax on their profits (corporation tax in the UK, income tax in the US), and
shareholders pay income tax on dividends. Income taxes in most countries
are progressive and are one way the government redistributes wealth. The
problem with progressive taxes is that marginal rates – the tax people pay
on additional income – are always high, which is generally a disincentive
for both those who work and those who invest. On the other hand, most
sales taxes are regressive because poor people have to spend a larger
portion of their income on consumption than rich people. The higher the
tax rate, the more people are tempted to cheat, but there are plenty of
'black' or 'underground' economies everywhere. In Italy, for example, self-

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 employed workers – whose incomes are more difficult to control than
corporate workers – account for more than half of national income. Many
people also have undeclared part-time evening jobs (some call it
'moonlighting') in small and medium sized family companies, where no
one pays tax or national insurance. In late 1986, the Director of the Italian
Institute of National Statistics calculated the size of the underground
economy, and added 16.7% to Italy's gross national product (GNP) figures,
and later claimed that Italy had surpassed Britain as the fifth country in the
world. largest economy.To reduce income tax liabilities, some employers
give their high-paid employees many 'perks' (short for allowances) instead
of taxable money, such as company cars, free health insurance, and
subsidized lunches.

B. Price stability in achieving economic goals

Price stability is often considered a necessary foundation for
sustainable economic growth. When prices tend to be stable, consumers
and producers can make better economic decisions, creating a healthier
business environment.
Although price stability is important, there are potential trade-offs
with other economic goals such as rapid economic growth or decreasing
unemployment rates. Governments and central banks must find the right
balance to achieve this goal.

C. Central Bank Control

Openness and effective communication between the central bank
and the government can help create a shared understanding of policy
objectives and steps taken.

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 Through Appropriate approaches may vary depending on the
specific country context. Each country may need to adapt its supervisory
structure according to existing needs and economic conditions.
Decisions regarding central bank control must take these factors
into account, and may require ongoing evaluation to maintain a balance
between independence and accountability.

D. Considerations in Product Line Management

The 'black' or 'underground' economy refers to economic activities that are

not recorded or regulated by the government. Several factors that can
cause the emergence of a 'black' or 'underground' economy include:

High tax rates on income or consumption may encourage

individuals and businesses to seek ways to avoid or reduce tax obligations
by engaging in unreported transactions or employment. In addition,
complex regulations and difficult bureaucracy can encourage individuals
and businesses to look for alternative routes that are simpler and less
regulated.

Economic policies that are unpopular with the public or business

people can also trigger involvement in the 'black' economy as a form of
protest or disapproval. The 'black' or 'underground' economy often
emerges in response to economic discontent or challenges, and a deep
understanding of these factors is important for designing effective policies
to address this phenomenon.

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 CHAPTER III
CLOSING

Conclusion

In exploring an in-depth understanding of the economic aspects

discussed above, we discover the complexity and interrelationships
involving taxation, monetary policy, and the dynamics of the informal
economy. Discussions about whether price stability is more important than
other economic goals, central bank control, and the emergence of the
'black' economy have opened the door to deep reflection regarding the role
of government, financial institutions, and public participation in achieving
sustainable economic growth.

Ultimately, there are complex challenges and opportunities in

managing these aspects of the economy. In formulating policies and
designing economic systems, there needs to be a wise compromise to
achieve an optimal balance between stability, growth and economic
justice. Through deep understanding and cooperation, we can build a solid
foundation to achieve sustainable and inclusive economic goals.

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 BIBLIOGRAPHY

MacKenzie, Ian, 1977, Business Studies, (United Kingdom, University Press).