Public Finance [IEcoS (Economic Services) Economics Paper-3]: Questions 10 - 17 of 26

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Question number: 10

» Public Finance » Theories of Taxation » Incidence of Taxation

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

What are the requirements for a good tax structure? Discuss how far the Benefit Tax principle fits with these criteria.

Explanation

  • The requirements of a good tax structure as follows:

    • Revenue yield should be adequate.

    • The distribution of the tax burden should be equitable. Everyone should be made up to pay his or her fair share.

    • What matters in this context is not only the impact point at which the tax is imposed but its final resting place. The problem of incidence is thus allow

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Question number: 11

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the growth theory of a firm given by Robin Morris.

Explanation

  • According to Robin Morris, managers strive to maximize the balanced growth rate of an organization subject to managerial and financial constraints. Morris translates the two growth rates in to two utility functions, which are as follows:

    • Manager’s utility functions (salary, power, job security, prestige and status)

    • Owner’s utility function

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Question number: 12

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a short note on Laffer curve.

Explanation

Laffer curve is an illustration of the thesis that there exists some optimal tax rate which maximizes government tax revenues.

  • The thesis may be expressed in terms of personal or corporate taxes and it proposes that taxes above the optimal rate discourage production and hence result in lower revenues.

  • In other words, if higher income taxes cause disi

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Question number: 13

» Public Finance » Theories of Taxation » Incidence of Taxation

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

What do you mean by tax incidence? Analyze how is it determined under the modern theory of incidence of taxation?

Explanation

  • Tax incidence is defined as its final resting place. It is to be seen and judged in terms of the money burden.

    • Thus, the incidence of a tax is upon that economic unit which finally bear the money burden of it and which are not able to pass it on to others.

    • The modern economists like Dalton were of the view that the shifting of taxation is basically a

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Question number: 14

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the concept of equity in taxation. Analyze how ability to pay theory is useful in achieving it.

Explanation

  • The concept of equity in taxation refers to the social justice in the allocation of tax burden.

    • Equity is identified with other general criteria such as fairness, justice or avoidance of hardship, and linked with particular phenomenon such as distribution of income or property.

    • There are two criteria of equity:

      • Horizontal equity implies that all the t

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Question number: 15

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Write a short note on Public Choice theory.

Explanation

Public choice theory was developed in USA during the past two or three decades. This approach is associated with the economists like A. Downs, J. M. Buchanan and G. Tullock and others.

  • Public choice is concerned with the application of economics with that of political science. The growth of public sector has been an important objective of public cho

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Question number: 16

» Public Finance » Shadow Prices of Investment

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the methods of determining shadow price.

Explanation

  • Shadow prices have been used as an adjective in three senses:

    • In mathematical programming, the term is used for interpretation of dual problem and in this sense, the shadow price Lagrange’s multiplier for constraint optimization.

    • The term is used to cover the benefits and costs that are unpriced.

    • The shadow prices are used in those countries where pri

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Question number: 17

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

What do you mean by tax incidence? Analyze how is it determined under the modern theory of incidence of taxation?

Explanation

Tax incidence is defined as its final resting place. It is to be seen and judged in terms of the money burden. Thus, the incidence of a tax is upon that economic unit which finally bear the money burden of it and which are not able to pass it on to others.

  • The modern economists like Dalton were of the view that the shifting of taxation is basically

… (293 more words) …

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