WAEC Economics Past Questions & Answers - Page 75

Indirect taxes: An indirect tax is a tax levied on goods and services rather than on income or profits. indirect taxes are regressive in nature. They are consumption based taxes, service tax, value added tax,customs and excise duty etc are examples of Taxes are regressive when they impose a harsher burden on the poor than on the rich.

The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.

Agricultural bank: a type of bank that lends money to farmers for longer periods of time and charges them less interest than other types of banks. they do not trade in the capital market.

Cost push inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.

Inflation is simply a market condition where plenty money is used to pay for less goods.  when there is excess money in circulation in the economy, it can lead to inflation. In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase, real interest rates fall as inflation increases. (because there is excess money in the economy, borrowing will not be expensive).