Micro 8 Flashcards
1
Q
Incidence of tax
A
The tax burden on the taxpayer
2
Q
Specific tax
A
A tax imposed on a good where the value of the tax is dependent on the quantity that is bought
3
Q
Indirect tax
A
Taxes on expenditure which increase production costs and leads to a fall in supply
4
Q
Subsidy
A
Government payments to a producer to lower their costs of production and encourage them to produce more
