Explain the impact, incidence and shifting of tax.
Impact of taxation: Taxation on goods, income or wealth influencing economic behavior and the distribution of resources. For example higher taxes on carbon emissions will…
Explain the merits and demerits of indirect tax.
Meaning: Indirect tax is a type of tax that is imposed on goods and services than on income or profits. The key characteristic of an…
Explain the merits and demerits of Direct tax.
Introduction: Taxes are compulsory payment to the government without expectation of definite return or benefits to the tax payer. According to Dalton, a tax is…
What is production? explain its types.
Meaning: Production involves the use of various inputs or factors services to produce output. In economics production means transformation of inputs into outputs, in other…
Explain the Keynes savings and investment theory.
Introduction: Saving function is the counter part of consumption function because S=Y-C. Therefore S=f(Y). Saving means economic surplus, it may be defined as the difference…
Explain the liquidity preference theory of interest?
Introduction: J.M Keynes created the theory of liquidity preference theory of interest to explain the role of the interest rate by supply and demand for…
Explain Keynesian psychological law of consumption.
Introduction: The Keynesian concept of consumption function stems from the fundamental psychological law of consumption which states that there is a common tendency for people…
Explain the classical theory of employment.
Introduction: The classical economist believed in the existence of full employment in the economy. To them full employment was a normal situation and any deviation…
Explain the importance of estimation of national income.
Introduction: The estimation of national income refers to the process of calculating the total economic output of a country over a specific period, usually a…
