Microeconomics

Types of Taxes

Tax As we know that the most important source of revenue for the government is the tax. So, we can define it as a compulsory payment which an individual or companies have to pay on their income, property, expenditures, or earned profits. Types of Taxes There are basically three types of taxes levied upon taxpayers….

Macroeconomics

Theory of Absolute Advantage

The theory of absolute advantage was presented by Adam Smith in his famous book “The Wealth of Nations” published in 1776. He emphasized the division of labor and also indicated the importance of specialization in production. Smith, in his theory of absolute advantage, described that the countries’ trading should be based on absolute advantage. If…

Microeconomics

Marginal Productivity Theory of Distribution -Explanation

Marginal productivity theory of distribution in economics has its own importance.in fact, the theory of distribution is very important for the entrepreneurs.in order to understand the marginal productivity theory of distribution, let us first understand some important terms. Average Physical Product: The Physical Product per unit of the factor of production is called Average Physical…