Economic World : What is the difference between the income effect a...

Economic World : What is the difference between the income effect a...: What is the difference between the income effect and the substitution effect of a price change? (A) The income effect is the change in deman...

Public Finance 

1. Public finance is the study of the income and expenditure, or the receipt and payment, of the government.

2. The principle of maximum social advantage was introduced by Dalton.

3. A tax that is levied on the value added at each stage of production and distribution is called a value added tax.

4. The tax system in India is progressive, which means the tax rate increases as the income increases.

5. The burden of direct taxes is borne by the taxpayer, while the burden of indirect taxes can be shifted to others.

6. The main objective of a tax is to raise public revenue.

7. The canon of taxation that states that the tax should be levied according to the ability of the taxpayer to pay is called the canon of equity.

8. The tax that is levied on goods when they enter a town is called octroi.

9. Public goods are those goods that have the characteristic of non-rivalry, which means that one person's consumption does not reduce the availability for others.

10. The technique of budgeting that requires every expenditure to be justified from zero base every year is called zero-base budgeting.