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demerits of direct taxesa heavy direct taxation especially when closely linked to current earnings can act as a serious check to productivity by
merits of direct taxesa they satisfy the principle of equity as they are easily matched to the tax payers capacity to pay once assessedb they
direct taxesa direct tax is one where the impact and incidence of the tax is on the same person eg income tax death or estate duty corporation taxes
classification of taxestaxes can be classified on the basis ofa impact of the taxesit means on whom the tax is imposed on the
principles of an optimal tax systemwhen taxes are imposed certain conditions must be fulfilled these conditions are known as principles or
functions or purposes of taxationthe functions of taxation can be discussed from the activities of the government it is meant to achievethese
types of budgets1 deficit budget if the proposed expenditure is greater than the planned revenue from taxation and miscellaneous
functions of the budgetthe budget fulfils three main functions to raise revenue to meet government expenditurethe government of a country provides
the budgetthe budget is a summary statement indicating the estimated amount of revenue that the government requires and hopes to raise it also
macro-economic policy objectivesthe major macro-economic policy objectives which the governments strive to achieve arei full employmentone of the
the microeconomic objectives of governmentthese are the policies which are concerned with the allocation and distribution of resources to maximize
objectives of governmentgovernment policies are required in market economies to achieve certain goals there are broadly two types of government
supply-side policiessupply-side policies are intended to increase the economys potential rate of output by increasing the supply of factor inputs
demand management policiesthese policies are intended to increase aggregate demand and therefore the equilibrium level of national income they
remedies for unemploymentthe measures appropriate as remedies for unemployment will clearly depend on the type and cause of unemployment broadly
the economic costunemployment represents a terrible waste of resources and means that the economy is producing a lower rate of output than it could
the social cost of unemploymenti for the individual there is the demoralizing effect which can be devastating particularly when
cost of unemploymentunemployment is a problem because it imposes costs on society and the individual the cost of unemployment to a nation can be
disguised unemploymentsituation where some people are employed apparently but if they are withdrawn form this job total production remains the same
keynesian unemploymentaccording to keynesian theory of income and employment unemployment occurs due to lack of effective demand if effective demand
structural unemployment caused by structural changes such that there exist cyclical unemployment during depression prices are too low and
transitional unemploymenttransitional unemployment is that situation which prevails due to some temporary reasons the main reason for this
factors responsible for wage differentials within the same occupationi differences in the environment for example a doctor sent
factors responsible for wage differentials between occupationsthe major cause is demand and supply for the particular labour concerned but other
differentials and disequilibriumin a free enterprise system workers aim at maximizing their wages hence it would be expected that workers would