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Buoyancy of tax refers to:
- a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.
- b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.
- c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.
- d)Relationship between the changes in government’s tax revenue growth and the changes in demand.
Correct answer is option 'B'. Can you explain this answer?
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Buoyancy of tax refers to:a)Relationship between the changes in govern...
Explanation:
Buoyancy of tax refers to the relationship between the changes in government's tax revenue growth and the changes in GDP.
Therefore, when we talk about the buoyancy of tax, we are looking at how changes in government's tax revenue growth correspond to fluctuations in GDP. This relationship is crucial for understanding the effectiveness of the tax system in capturing economic growth and generating revenue for the government.
Buoyancy of tax refers to the relationship between the changes in government's tax revenue growth and the changes in GDP.
- Tax Revenue Growth: Tax revenue is the income that government receives from taxation. The growth in tax revenue indicates the increase in the amount of money collected through taxes by the government.
- GDP: Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is a key indicator of a country's economic performance.
- Relationship: The buoyancy of tax measures how responsive tax revenue is to changes in GDP. If tax revenue grows at a faster rate than GDP, it indicates that the tax system is buoyant. On the other hand, if tax revenue grows at a slower rate than GDP, it suggests that the tax system is not very responsive to economic growth.
Therefore, when we talk about the buoyancy of tax, we are looking at how changes in government's tax revenue growth correspond to fluctuations in GDP. This relationship is crucial for understanding the effectiveness of the tax system in capturing economic growth and generating revenue for the government.
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Buoyancy of tax refers to:a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.d)Relationship between the changes in government’s tax revenue growth and the changes in demand.Correct answer is option 'B'. Can you explain this answer?
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Buoyancy of tax refers to:a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.d)Relationship between the changes in government’s tax revenue growth and the changes in demand.Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Buoyancy of tax refers to:a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.d)Relationship between the changes in government’s tax revenue growth and the changes in demand.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Buoyancy of tax refers to:a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.d)Relationship between the changes in government’s tax revenue growth and the changes in demand.Correct answer is option 'B'. Can you explain this answer?.
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