Archives: Terms

Definition of Tax Table A tax table is a chart or a set of tables that provide taxpayers with guidelines on how much tax they owe based on their income and filing status. Tax tables are used by individuals, businesses, and tax professionals to determine the amount of tax owed […]

Definition of Tax Incidence Tax incidence refers to the distribution of the burden of a tax between buyers and sellers in a market. It analyzes who ultimately bears the economic cost of a tax, whether it is the buyers, the sellers, or a combination of both. The incidence of a […]

Definition of Tax Evasion Tax evasion refers to the illegal practice of intentionally avoiding paying taxes that are owed to the government. It involves concealing income, overstating expenses, or misrepresenting financial information to reduce tax liability. Tax evasion is considered a crime and is punishable under the law. Example Let’s […]

Definition of Tax Brackets Tax brackets refer to specific ranges of taxable income that determine the rate at which an individual or business is taxed. In other words, tax brackets indicate the percentage of income that must be paid in taxes for each designated income range. The tax brackets are […]

Definition of Tax Base Tax base refers to the total amount of assets, income, purchases, or other factors that are subject to taxation. It is the foundation upon which tax liabilities are calculated and reflects the economic metrics used to determine the amount of taxes owed by an individual, business, […]

Definition of Tariff A tariff is a tax or duty imposed by a government on goods or services that are imported or exported. It is typically used as a trade barrier to protect domestic industries or to generate revenue for the government. Tariffs can be specific (based on the quantity […]

Definition of Sustainability Sustainability refers to the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It involves finding a balance between economic growth, social well-being, and environmental protection. In order to achieve sustainability, it is important to consider […]

Definition of Surplus Surplus refers to the amount by which quantity supplied exceeds quantity demanded at a given price. It represents an excess of supply in a market. Surplus can be measured in terms of both quantity and price. Example Let’s consider the market for concert tickets. Suppose a popular […]

Definition of Supply Shock A supply shock refers to a sudden and significant change in the supply of goods or services in the economy. This change can be caused by various factors such as natural disasters, political events, or technological advancements. Supply shocks can lead to a rapid increase or […]

Definition of Supply Curve The supply curve is a graphical representation of the relationship between the quantity of a good that producers are willing and able to sell and the price of that good, assuming all other factors remain constant. It is upward-sloping, indicating that as the price of a […]