E113 Flashcards
1
Q
Specific tax
A
A tax placed on a good/ service which is a specific amount per unit e.g alcohol
2
Q
Ad valorem tax
A
A tax placed on a good/service which is a percentage of the price
3
Q
Subsidy
A
Payment given to a firm usually by the government
4
Q
Output
A
The amount of goods/ services produced a firm
5
Q
Fixed costs
A
Costs that don’t vary with output e.g rent
6
Q
Production
A
Process of combining scarce resource to make an output
7
Q
Merger
A
Agreed coming together of two firms
8
Q
Take over
A
When one firm seeks to take control of another
