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प्रश्न
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
How are taxes used to regulate consumption and production?
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उत्तर
- Taxation policy regulates consumption and production in a country. Taxes are sometimes used to discourage the consumption and production of harmful commodities such as wine, cigarettes, etc.
- They are also effective in diverting the resources from production of non-essential commodities to essential goods.
- It can be done through differential commodity taxation by imposing heavy taxes on production of non-essential goods.
संबंधित प्रश्न
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Monetary policy means regulation of money supply by the monetary authority.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Which of these taxes is most likely to be progressive?
Distinguish between fiscal policy and monetary policy.
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Draw a neat labelled diagram for progressive taxation.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
State two differences between income tax and commodity tax.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
