(a) Creeping inflation: It occurs when there is a sustained rise in price at a very slow rate, say around 2 to 3 percent per year. It is also known as mild inflation. 

(b) “Direct taxes are progressive in nature.” Taxes in which the rate of tax increases with the rise in tax payers income, are called progressive taxes. The amount of tax paid will increase at a higher rate than the increase in tax base or income. 

(c) By ‘efficiency of labour’ we mean the productive capacity of a worker to do more or better work or both dining a specified period of time. 

(d) The two demerits of Barter system of exchange are as follows: 

1. Need for double coincidence of wants: The barter form of exchange can take place only when the two parties need each other’s goods in the form of exchange. 

2. Difficulty in storing value: In the barter system, it is very difficult and inconvenient to store weath for future use goods like food grains, cloth, cattle, sheep etc.

(e)