Web-Based Questions

1. Web-Based Question: Sparkly things-interested in buying one? Go to the Internet auction site eBay at www.ebay.com/index.html and click the category Jewelry and Gemstones. How many diamonds are for sale at the moment? How many rubies, sapphires, and opals? Note the wide array of sizes and prices of the gemstones. In what sense is there competition among the sellers in these markets? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices? Do you see something interesting there or elsewhere on eBay? Go ahead and buy it!



2. Web-Based Question: Barter and the IRS Bartering occurs when goods or services are exchanged without the exchange of money. For some, barter’s popularity is that it enables them to avoid paying taxes to the government. How might such avoidance occur? Does the Internal Revenue Service (IRS), www.irs.ustreas.gov/, treat barter as taxable or nontaxable income? (Click Taxpayer Help and Education, then Tele-Tax Topics, and then Types of Income) How is the value of a barter transaction determined? What are some IRS barter examples? What does the IRS require of the members of so-called barter exchanges?