CHAPTER 14 INDIRECT TAXES AND SUBSIDIES Flashcards
1
Q
Ad valorem tax
A
Tax levied as a percentage of the value of the good
2
Q
Incidence of tax
A
Tax burden on the tax payer
3
Q
Specific or unit tax
A
Tax levied on volume
4
Q
Subsidy
A
A grant given which lowers the price of a good, usually designed to encourage production or consumption of a good.
