Archives: Terms

Definition of Theory of Price The Theory of Price is an economic theory that explains how prices are determined in a free market. It takes into account the interplay of supply and demand, as well as various factors such as production costs, competition, and consumer preferences. According to this theory, […]

Definition of Tertiary Industry The tertiary industry refers to the sector of the economy that provides services to consumers and other businesses. It is also known as the service industry or the service sector. Unlike the primary industry, which involves extracting raw materials, and the secondary industry, which involves manufacturing […]

Definition of Terms of Trade (TOT) Terms of Trade (TOT) refers to the rate at which one country’s goods or services can be exchanged for the goods or services of another country. It represents the relative price of a country’s exports in terms of its imports and is calculated by […]

Definition of Terms of Employment Terms of employment refer to the conditions and agreements that govern the relationship between an employer and an employee. These terms outline various aspects of employment, including wages, working hours, benefits, leave, and other provisions. They establish the rights and responsibilities of both parties and […]

Definition of Taxpayer A taxpayer is an individual or entity that is legally responsible for paying taxes to a government authority. Taxes are compulsory contributions that individuals and businesses are required to make to fund public services and government initiatives. Taxpayers can include individuals, corporations, partnerships, and other legal entities, […]

Definition of Taxes Taxes are compulsory payments imposed by the government on individuals or businesses to fund public services and programs. They are a primary source of government revenue and are used to finance various initiatives such as infrastructure development, healthcare, education, and social welfare programs. Example To better understand […]

Definition of Taxation Without Representation Taxation Without Representation refers to a situation where a government imposes taxes on its citizens without allowing them to have a voice or representation in the decision-making process. This concept is closely associated with the principles of democracy and the idea that citizens should have […]

Definition of Taxation Taxation refers to the levying of taxes by a government on individuals, businesses, or other entities. Taxes are compulsory payments made by individuals or businesses to support public expenditure and government services. Taxation is a crucial component of government revenue and is used to fund public goods, […]

Definition of Tax Wedge A tax wedge is the difference between what employers pay for an employee’s labor and what the employee receives in take-home pay. This difference includes both the employee’s income tax and the employer’s portion of any social security or payroll taxes. The tax wedge can be […]

Definition of Tax-to-GDP Ratio The tax-to-GDP ratio is a measure that compares the total amount of taxes collected by a government to the country’s Gross Domestic Product (GDP). It is expressed as a percentage and provides insights into the size of the government’s tax revenue relative to the overall economy. […]