Government And Taxation Flashcards
Republic
Republic is the rule where some or all of the people control over a government
Monarchy
It rule by an individual who passes power over his heir
Constitutional monarchy
It is a rule where an monarch exists but their power have limited by constitution.
Ideology
Ideology is a set of ideas and idea that form a foundation of political or economic theory
Planned economy
Planned economy are those where a central authority(government) decide what will be produced and the industries that receive investment according to the central plan
Unplanned economy
Unplanned economy are those where economic decisions are determined by the interaction of buyer and sellers using price mechanism
Laissez-faire economics
Laissez-faire economics are market economics with no unnecessary interventions
They involves private ownership of resources and free market
Command economics
Command economy are strictly planned economics where all resources are owned by the state and production decision occur in accordance with central plan
Mixed economics
In mixed economics,resources may be owned by either private or public (government) enterprises
Production decisions may be market-based but there may be government intervention in those markets.
Taxation system
Progressive tax
Proportional tax
Regressive tax
Progressive tax
Increase the average rate of tax as the amount subject to taxation increases
Proportional tax
Sees the average rate of tax remain the same as the activity increase
Regressive tax
Occur when the average rate of tax falls as the amount subject to taxation increase.
Purpose of government taxation
Providing public good
Reallocation of resources
Redistribution of income
Public good
Private enterprise usually won’t provide public goods because it’s difficult /impossible to make people pay
Without payment,the private enterprise can’t make a profit ,so it avoid the market for that goods/services.
Reallocation of resources
Means to transfer the different economic resources from one industry to another
Redistribution of income
Transfer of incomes from one group of people to another.
Government revenue
The spending on all of programs that government puts in place to achieve their policy goals
Infrastructures
A form of public investment in system and capital that allow private investment to flourish
General taxation
Income tax
Business tax
Sales tax
Accounting (word explanation)
Preparing financial statements showing income and expenditure,assets and liabilities
Managerial accounting
Providing information that will allow a business to make decisions ，plan future operations and develop business strategies
Creative accounting
Using all available accounting procedures and tricks to disguise the true financial position of a company
Auditing
Inspecting and reporting on accounts and financial records
Tax accounting
Calculating how much an individual or a company will have to pay to the local and national governments(and trying to reduce it to minimum)
Cost accounting
Calculating all the expenses involved in producing something,including materials ,labour and all other expenses
Bookkeeping
Write down the detail of transaction
