Saturday, June 8, 2013

Fiscal Policy; Taxes; Subsidize (13)

Fiscal Policy
It is the government policy which deals with the government income and the expenditure to control same ares
in the economy.

Taxes

Tax is a compulsory payment a firm has to pay to the government when taxes increase cost of production will increase.Therefore
disadvantages to the business as demand will fall for the goods due to high prices.

Subsidize

Subsidize are grant given to producers to encourage production by reducing the total cost of the business.

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