Meaning: Public expenditure refers to the spending made by the government or public authorities to provide goods and services, support economic development, and fulfill various public needs. It includes all the financial outlays by the
Introduction: Taxes are levied by the government on the basis of three major classes of tax rates. The classification of tax are progressive, proportional and regressive. In order to understand them it is essential to
Introduction: Taxes can have significant effects on the distribution of income and wealth within an economy. These effects vary depending on the type of tax (direct or indirect), the structure of the tax system, and
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 increase cost for producers, reduce demand and shift demand towards
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 indirect tax is that it is collected by an intermediary
IMPORTANT QUESTIONS; TEN MARKS QUESTIONS SIX MARKS QUESTIONS
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 a compulsory contribution imposed by public authority irrespective of the
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 words production is a process of changing the form of
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 between current income and current consumption. Keynes defined savings as
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 money in 1936. According to Keynes the rate of interest
