(a) Price elasticity of Demand : According to Boulding, “Price elasticity of demand measures the responsiveness of the quantity of a good demanded to the change in its price.”
(b) Proportional Taxation : Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. This means that lower class, or middle class, or upper class people pay the same amount of tax.
(c) Capital Formation : It means making and increasing of more capital goods, such as machines, tools, factories, buildings, raw materials, fuels, etc., which are to be further used in producing more goods. According to Benham, “ The amount a country adds to its capital during a **, is known as the capital formation during that **.”
(d) Labour : A Labour is always indicates some kind of ‘mental’ or ‘physical’ exertion undertaken with a motive to earn money. According to Marshall, “Any exertion of mind or body undergone partly or wholly with a view to some good other than the pleasure derived directly from the work is called Labour”.
(e) Inflation : Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
