Get premium membership and access questions with answers, video lessons as well as revision papers.
(i) Solve balance of payment deficit.
Government taxation can be used to reduce importation hence solve balance of payment deficit.
(ii) Protection of local industries.
Through taxing imports, they will become expenditure hence discourage their consumption,people will hence buy local goods.
(iii) Provision of essential goods/ services.
The government is able to provide these goods from the funds collected.
(iv) Control consumption of certain goods.
The government can discourage consumption of certain goods in order to reduce their impact on people's health by taxing.
(v) Promote balanced regional development.
Funds collected can be used to start up projects in areas that are under developed/ discourage localization by heavily taxing firms in localized areas.
(vi) Promotes economic stability.
Funds collected are used to solve problems such as unemployment through increasing public expenditure.
(vii) Redistribution of wealth: This is done by the government taxing the rich and using the money to provide essential goods/ service to the poor.
(viii) Creates conducive business environment.
Through public expenditure the government can develop infrastructure to enable businesses to thrive.
maurice.mutuku answered the question on August 12, 2017 at 09:22
- What documents are used in international trade?(Solved)
List the documents that are used in international trade.
Date posted: August 12, 2017. Answers (1)
- What features differentiate a co-operative society from a partnership form of business?(Solved)
List features that differentiate a co-operative society from a partnership form of business.
Date posted: August 12, 2017. Answers (1)
- What benefits could be enjoyed by a person who decided to take out an endowment policy?(Solved)
List benefits that could be enjoyed by a person who decided to take out an endowment policy.
Date posted: August 12, 2017. Answers (1)
- In what ways does Kenya benefit from its natural resources endowment?(Solved)
List ways in which Kenya benefits from its natural resources endowment.
Date posted: August 12, 2017. Answers (1)
- What are the advantages of using credit cards as a means of payments?(Solved)
List the advantages of using credit cards as a means of payments.
Date posted: August 12, 2017. Answers (1)
- What factors may limit the use of modern technology in business?(Solved)
List factors that may limit the use of modern technology in business.
Date posted: August 12, 2017. Answers (1)
- What factors may lead to demand pull inflation?(Solved)
Mention factors that are likely to lead to demand pull inflation.
Date posted: August 12, 2017. Answers (1)
- What methods do the banks use in transferring funds?(Solved)
List methods that banks use in transferring funds.
Date posted: August 12, 2017. Answers (1)
- What factors may lead to business mergers?(Solved)
List factors that may lead to business mergers.
Date posted: August 12, 2017. Answers (1)
- What are the limitations of using billboards as a method of advertising products?(Solved)
List the limitations of using billboards as a method of adverting products.
Date posted: August 12, 2017. Answers (1)
- What are the current trends in banking?(Solved)
Highlight the current trends in banking.
Date posted: August 11, 2017. Answers (1)
- What are the possible problems encountered in the implementation of the undeveloped plans in developing countries?(Solved)
List the possible problems that are encountered in the implementation of the undeveloped plans in developing countries.
Date posted: August 11, 2017. Answers (1)
- What measures should a firm take to improve the performance of its labour force?(Solved)
List measures that a firm should take to improve the performance of its labour force.
Date posted: August 11, 2017. Answers (1)
- What problems may consumers encounter as they try to satisfy their wants?(Solved)
List the problems that consumers encounter as they try to satisfy their wants.
Date posted: August 11, 2017. Answers (1)
- What benefits accrue to a community that engages in commercial production?(Solved)
Outline the benefits that accrue to a community that engages in commercial production.
Date posted: August 11, 2017. Answers (1)
- What are the roles of International Monetary Fund(IMF) in economic development?(Solved)
Explain the roles of International Monetary Fund(IMF) in economic development.
Date posted: August 11, 2017. Answers (1)
- What principles should be considered when designing a good tax system?(Solved)
List the principles that should be considered when designing a good tax system.
Date posted: August 11, 2017. Answers (1)
- What factors should one consider when choosing a medium of advertisement?(Solved)
Highlight factors that should be considered when choosing a medium of advertisement.
Date posted: August 11, 2017. Answers (1)
- What disadvantages may a country experience from imposing trade restrictions on trading partners?(Solved)
Give the disadvantages that a country may experience from imposing trade restrictions on trading partners.
Date posted: August 11, 2017. Answers (1)
- What factors may cause a decrease in supply of a commodity in the market?(Solved)
List factors that may cause a decrease in supply of a commodity in the market.
Date posted: August 11, 2017. Answers (1)