Category: Economics

The Nigerian Tax Law: All You Need Know


Collecting taxes are one of the ways government generates revenue for carrying out it assignments. People in the developed world know the importance of taxes and take it upon themselves to pay. For those thinking of evading taxes, they do so with fear. When caught, you will pay direly for it. In countries like the […]

Basic Economic Problems of Society Explained

Every society irrespective of the type of economic system adopted; whether capitalism or socialism, is faced with the following basic fundamental economic problems: What To Produce Every society is faced with the first problem of determining what goods and services to be produced and the quantity that are to be produced. This problem arises mainly […]

Wages: Definition, Types, Wage Determination


Wages are rewards paid for the services of labour. That is to say, the amount paid to labour for the services it rendered during production. Types of Wages 1. Nominal Wages Nominal wages, also known as money wages are the total quantity of rewards paid to labour which are measured in monetary terms. That is […]

Indirect Taxes: Types, Advantages and Disadvantages


Indirect Taxes are taxes levied on locally made, imported and exported goods and services. These taxes imposed on goods and services are layer on transferred to consumers in form of high prices, and this is why they are called indirect. The payers of these taxes do not bear their final brunt. Types of Indirect Tax […]

Forms of Tax: Advantages and Disadvantages


There are two major forms of tax. Direct and Indirect taxes. Direct tax is collected directly from individuals and profits of companies. The profit of direct tax is borne by the payers. Types of Direct Tax 1. Income Tax This is a compulsory contribution imposed on the personal income of individuals based on their gross […]

Taxation: Features, Principles of Good Tax System


Tax may be defined as a compulsory contribution contribution imposed by a government authority on goods, individuals, corporate bodies, etc, irrespective of the exact amount of services rendered to the tax payer in return, and not imposed as a penalty for any legal offence. Features of a Tax 1. Tax is a compulsory payment. 2. […]

Budget: Types, Revenue and Expenditure


A budget may be defined as a financial statement of the total estimated revenue and the proposed expenditure of a government in a given period, usually a year.  Types of Budget  1. Balanced Budget  This is when the total estimated revenue is equal to the proposed expenditure. This means that nothing will be left as […]

Burden of National or Public Debt


The extent of the burden of national or public debt is determined by the type of debt whether external or internal, the purpose for which the debt was used and the period of repayment. Unlike external debts, the burden of internal debt tends to be minimally felt. This is as a result of the fact […]