Chapter 13 - Indirect Taxes And Subsidies Flashcards
1
Q
Ad valorem tax
A
A tax charged as percentage of the value of the good
2
Q
Incidence of tax
A
Tax burden on the taxpayer
3
Q
Specific or unit tax
A
Tac charged on volume
4
Q
Subsidy
A
Money given to producers to lower cost of production and increase output
