Which of the following will have a more destabilizing effect on the economy?
A tax on the price of vehicle
A tax on petrol
A decrease in the supply of vehicle
Moderate increase in wages
Correct answer is B
Petrol products are used for a number of things including, powering generator plants used by businesses and firms, fueling of vehicles for commercial and personal use, etc.
An increase in the price of petrol will lead to an increase in the general prices of goods and services, thereby, causing a distortion in economic growth.
Progressive
Regressive
Certain
Equitable
Correct answer is B
Indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). This means that the tax is not directly deducted from the income of the consumer, but deducted at the point of buying goods and services.
An indirect tax is regressive in nature because everyone is made to pay the same tax rate. It doesn't take into consideration the income or social status of the buyer. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners.
Public finance is basically an analysis of the
Income and expenditure of government
Expenditure patterns of the government
Current and capital receipts of the government
Current and capital expenditure of the
Correct answer is A
No explanation has been provided for this answer.
Creation of money by commercial bank is done by
Increasing the cash ratio
Printing money
Lending to borrowers
Issuing cheques
Correct answer is C
No explanation has been provided for this answer.
The Central Bank can restrict credit through
Depreciation of assets
Granting overdraft
Direct investment
Open market operation
Correct answer is D
No explanation has been provided for this answer.