Key terms-supply(1.2.2)

Question 1

Government subsidies definition

Answer 1

a payment given to producers usually to encourage production of a certain good

Question 2

Indirect taxes definition

Answer 2

taxes imposed by the government on spending
e.g. VAT and excise duties
responsibility for payment lies with the business

Question 3

Supply definition

Answer 3

amount that producers are willing/able to provide at a given price and over a given period of time