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What is the difference between price and tax? - Economics

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Question

What is the difference between price and tax?

Distinguish Between

Solution

Price  Tax
Price is to be paid by the person who purchases goods and services provided by the government.  Tax is a compulsory contribution to be paid by every citizen upon whom 
It is the direct payment for using special services. It is imposed. And it does not guarantee any benefit.
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Chapter 10: Public Revenue - Exercise [Page 175]

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Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 10 Public Revenue
Exercise | Q 5. | Page 175
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 10 Public Revenue
QUESTION BANK | Q 19. | Page 179
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