| Question | 8. Define tax revenue. What are the two kinds of tax revenues? Give two examples of each. |
| Class | Class 12 |
| Subject | Economics (Macroeconomics) |
| Category | Class 12 Economics Solutions Sandeep Garg |
Sandeep Garg Macroeconomics Class 12 Solutions Circular flow of Income – Short Questions – Q.8 Define tax revenue. What are the two kinds of tax revenues? Give two examples of each.
Solution:-
Tax is a compulsory payment to the Government imposed on citizens and corporates of a country by Law, in order for the Government to meet its expenditures. Two kinds of tax revenues are: –
- Direct tax revenue: – Direct Taxes are those taxes which are levied on and the burden to pay is on the same person or corporate. The Burden to pay a direct tax cannot be shifted on another person. Examples of Direct taxes are Income Tax, Corporate Tax, Wealth Tax etc.
- Indirect Tax revenue: – Indirect taxes are those revenue receipts for the government in which burden to pay can be shifted. In other words, the person on whom tax is levied and the person who ultimately bears the brunt of tax are different. Example, GST and excise duty.
Short Questions – Sandeep Garg Macroeconomics Class 12 Solutions Government budget and the Economy
- State three objectives of a government budget
- Explain objective of stability of prices of government budget
- How can a government budget help in reducing inequalities reducing inequalities of income? Explain.
- Explain the ‘allocation of resources’ objective of Government budget.
- What is a government budget? Name two sources each of non-tax revenue receipts and capital Receipts.
- What is a government budget? Give the meaning of: (a) Revenue deficit; (b) Fiscal deficit.
- What are the two broad divisions of receipts of the government budget? Name two sources of each kind of receipt.
- Define tax revenue. What are the two kinds of tax revenues? Give two examples of each.
- Distinguish between Direct Tax and Indirect Tax
- Explain with the help of suitable examples the basis of classifying taxes into direct and indirect taxes
- Distinguish between revenue receipts and capital receipts
- Give meanings of Capital receipts and Revenue receipts with an example of each.