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Questions
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Why is government support necessary to build up economic infrastructure in a developing economy?
Solution
- Investment in infrastructure is crucial as it promoters investment both in private as well as public sectors.
- Infrastructural facilities are quite inadequate in a developing economy. Private investors do not like to invest in their development. So state's role is considered indispensable.
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RELATED QUESTIONS
Under ______ the rate of tax increases with rise in tax payer's income.
Instruments of fiscal policy is:
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
Name any two instruments of Fiscal Policy.
Define Direct tax
Explain the term proportional taxation.
Explain the term Impact of a tax.
Explain the significance of taxes.
Citing reasons state the superiority of Progressive tax over regressive tax.
