Month: October 2020

Price discrimination with a view to increasing total revenue by charging a higher price in the relatively price inelastic (or low elastic demand) market and a lower price in the elastic demand market. Government’s indirect tax policy with a view Read More …

The balance of Payments of a country is a record of all financial transactions between residents of that country and residents of foreign countries. (Residents‟ in this sense does not just refer to individuals but would also include companies, corporations Read More …

For a country to become richer or less poorer, it must increase it production of goods and services by putting to good use its available productive resources. Efficiency in resource use is achieved through specialization. Under specialization an individual an Read More …

International trade is the exchange of goods and services between countries (i.e. between one country and another). This form of trade is either in goods, termed visibles or services termed invisibles eg. trade in services such as tourism, shipping and Read More …

Inflation has different effects on different economic activities on both micro and macro levels. Some of these problems are considered below: a. During inflation money loses value. This implies that in the lending-borrowing prices, lenders will be losing and borrowers Read More …

Inflation may be defined as a persistent rise in the general level of prices or alternatively as a fall in the value of money over a given period of time. Any increase in the quantity of money, however small, can Read More …

Fiscal policy refers to the manipulation of government revenue and expenditure to achieve policy objectives associated with: Moderating resources allocation and adjusting price mechanisms in favour of the satisfaction of public wants by encouraging socially optimal investments as well as Read More …

Government expenditure refers to government outlays, in terms of recurrent and development expenditure in a given financial year. If resources are less than expenditure requirements the external and internal borrowing may be relied upon to supplement available resource. Whenever long Read More …

A national budget is a quantitative financial statement outlining ways in which governments plan to raise revenue and to spend it. Such a budget may be surplus, balanced or deficit in nature. Whenever expenditure exceeds revenue, a financing deficit may Read More …

Taxation is the process of imposing compulsory contribution on the private sector to meet the expenses which are incurred for a common good, that is, transfer payment process from the private sector (including the public) to the government with a Read More …