An indirect tax has an effect of increasing the price of the product and how much of the tax burden is going to be transferred to the final consumer depends on the nature of elasticity of demand. Assuming that the objective of the government is to discourage consumption, the tax policy is going to be effective only if the demand for the taxable commodity is relatively elastic so that an increase in its price reduces the quantity demanded more than proportionately.
Wilfykil answered the question on February 6, 2019 at 13:26
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In a certain economy the marginal propensity to save is 0.2 and the autonomous consumption equals
400. If the Government?s expenditures were to increase by 50%...
(Solved)
In a certain economy the marginal propensity to save is 0.2 and the autonomous consumption equals
400. If the Government‟s expenditures were to increase by 50% what would be the resultant change in National income.
Date posted:
February 6, 2019
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Answers (1)
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In a certain economy the marginal propensity to save is 0.2 and the autonomous consumption equals
400. Formulate the consumption function.
(Solved)
In a certain economy the marginal propensity to save is 0.2 and the autonomous consumption equals
400. Formulate the consumption function.
Date posted:
February 6, 2019
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Answers (1)
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In the context of international trade, explain the concept of comparative advantage with specialization
(Solved)
In the context of international trade, explain the concept of comparative advantage with specialization
Date posted:
February 6, 2019
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What is meant by the term international trade?
(Solved)
What is meant by the term international trade?
Date posted:
February 6, 2019
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Explain the economic effects of a high rate of inflation
(Solved)
Explain the economic effects of a high rate of inflation
Date posted:
February 6, 2019
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What are the major causes of inflation?
(Solved)
What are the major causes of inflation?
Date posted:
February 6, 2019
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Answers (1)
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Define inflation.
(Solved)
Define inflation.
Date posted:
February 6, 2019
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Answers (1)
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Explain what fiscal policy entails.
(Solved)
Explain what fiscal policy entails.
Date posted:
February 6, 2019
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Answers (1)
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To what extent can an economy be supported by deficit – financing?
(Solved)
To what extent can an economy be supported by deficit – financing?
Date posted:
February 6, 2019
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Answers (1)
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Clearly explain the meaning of deficit financing of the national budget.
(Solved)
Clearly explain the meaning of deficit financing of the national budget.
Date posted:
February 6, 2019
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Answers (1)
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Clearly explain the principle functions of taxation
(Solved)
Clearly explain the principle functions of taxation
Date posted:
February 6, 2019
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Answers (1)
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Define taxation.
(Solved)
Define taxation.
Date posted:
February 6, 2019
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Answers (1)
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Briefly explain the types of budgets.
(Solved)
Briefly explain the types of budgets.
Date posted:
February 6, 2019
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Answers (1)
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Clearly explain the role of budgetary management in economic development
(Solved)
Clearly explain the role of budgetary management in economic development
Date posted:
February 6, 2019
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Answers (1)
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Suggest the possible measures that you would implement to contain unemployment problems in your
country
(Solved)
Suggest the possible measures that you would implement to contain unemployment problems in your
country
Date posted:
February 6, 2019
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Answers (1)
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Discuss the main causes of unemployment
(Solved)
Discuss the main causes of unemployment
Date posted:
February 6, 2019
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Answers (1)
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Define the term unemployment
(Solved)
Define the term unemployment
Date posted:
February 6, 2019
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Answers (1)
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Explain the concept of liquidity trap
(Solved)
Explain the concept of liquidity trap
Date posted:
February 6, 2019
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Answers (1)
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How do commercial banks "create credit?? What are the limitations to this credit creation?
(Solved)
How do commercial banks "create credit‟? What are the limitations to this credit creation?
Date posted:
February 6, 2019
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Answers (1)
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A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
(Solved)
A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
Date posted:
February 6, 2019
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Answers (1)