Incidence Of Tax Flashcards
1
Q
Who pays TAX to the government ?
A
ONLY the producers
2
Q
The Size of tax is the…
A
Vertical distance between the two supply curves
3
Q
Whatever the price goes up by … pays, Whatever is left … pays
A
Consumer
Producer
4
Q
Considerations for Govt when tax increases. Effects on:
A
Price
Quantity consumed
Jobs
Govt revenue
