Revision Assignment

1. Define the terms: 3 marks

A.Tax evasion b.Budget Deficit c.Direct taxes

2. List 4 aims of taxation – 4marks

3. Calculate the tax percentage and identify the nature of taxation. 2 marks

Annual Income % Of Tax paid $ tax paid

5,000 ? 1500
15,000 ? 4500
25,000 ? 7500

4. Show the immediate impact of the following factors on labor demand or/and labor supply curve. 5 marks

a. Government announces reduced working hours for employees

b. A reduction in exports of footballs produced by labor

c. Government announces an increased rental allowance for workers

d. Government offers subsidy on purchase and installation of heavy machinery

e .Free Training program initiated to enhance the skills of workers

5. Identify whether each of the following are revenue or capital expenditure. 2 marks

a. Construction of Infrastructure for Metro bus

b. Cash distributed under Benazir income support program

6. Identify the type of taxes paid to each of the following: 4 marks

a. A footballer’s weekly wage _________________

b. Import of computers from USA__________________________
c. Tax on mineral products ______________________
d. Special permit for fishing ____________________

6. What would be the impact of increased Interest rate on demand for house loans? 2 marks

7. List any 3 factors that influence savings. 3 marks

8. Interpret an APC value of 0.85 and calculate the APS. 2 marks

9. Calculate the APS if the consumption is 200 and disposable income is 500. 2 marks

10. What advantage would a government have if it widens the tax net? 2 marks

11. Define the term remittance. State one advantage. 2 marks

12. What solutions were proposed in the article for improving the economic condition of Pakistan? 3 marks