markets and market failure Flashcards
1
Q
the central purpose of the production of goods and services is to…
A
satisfy consumer wants and needs
2
Q
define direct tax
A
a direct tax is paid directly to the government, imposed on income & profits (income tax, the corporate taxes, property taxes, & gift taxes.
3
Q
define indirect tax
A
an indirect is levied on goods and services, there is an intermediary for collecting indirect taxes from the end consumer
4
Q
what is most likely to reduce the benefits of specialisation
A
trade conducted by bartering
5
Q
define bartering
A
trading one good or service for another without using a medium of exchange such as money.
