Base of categorizing receipts into revenue and capital
What is the base of categorizing receipts into revenue and capital receipts?
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Answer: Revenue receipts are such which neither make a liability for the government nor decrease the assets of government like sales tax, income tax, fees, profits and so on. Capital receipts are such that either makes a liability for government or decrease assets like borrowings, disinvestment, recovery of loans and so on.
Illustrate a point on consumption curve at which APC = 1. Answer: APC = C/Y = 1 is possible when C = Y, that is, Consumption is
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