ECO 402
GDB No. 1 Solution
DUE DATE 30-08-2022
ANSWER:-
Oil price increases are
generally thought to increase inflation and reduce economic growth. In
terms of inflation, oil prices directly affect the prices of goods made with
petroleum products. As mentioned above, oil prices indirectly affect costs such
as transportation, manufacturing, and heating.
In current era petroleum product have become necessity and
therefore are taxation on petroleum product will increase government revenue by
huge margin people have to travel from one place to another and vehicle used
petrol or diesel to work. So high taxes could increase the government revenue
however the people will reduce the use of such products Slightly increase in
taxation of petroleum product have butterfly effect as increased price of all
product in such as market because they are being used in production of almost
all product
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