Answer to Question #315760 in Microeconomics for Hope

Question

The objectives of virtually all tax systems can be classified into two broad categories namely Revenue and Non-Revenue goals.

Some of the non-revenue goals incorporated in our current tax regime include Stabilization Function, Economic Growth Function, Redistribution of Income Function, and Allocation Function.

Critically assess the contribution of the above policies in safeguarding the micro and macro-economic objectives of a nation.

Answer 1

Answer.

- Microeconomics is important as it focuses on the smaller or individual aspects of the economy like workers, households and businesses. -Macroeconomics, on the other hand, is important as it studies the economy as a whole. It looks after the major aspects of the economy such as GDP, unemployment rates, and inflation.