Role of Government in Microeconomics Flashcards
1
Q
Price Ceiling
A
Government regulations that set a maximum price for a good or service.
2
Q
Price Floor
A
Government regulations that set a minimum price for a good or service.
3
Q
Indirect Tax
A
A payment taken indirectly from consumers by charging for their expenditure on goods and services.
4
Q
Specific Tax
A
A fixed amount of tax on a good or service.
5
Q
Ad Valorem Tax
A
A percentage tax on a good or service.
6
Q
Government Failure
A
Arises when government intervention causes more social costs than benefits.
