Supply, Demand And Gov Policies Flashcards
0
Q
Price floor
A
Legal min on the price at which a good can be sold
1
Q
Price ceiling
A
Legal max on the price at which a good can be sold
2
Q
Direct taxes
A
Tax levied on income and wealth
3
Q
Indirect tax
A
Tax levied on the sale of G and S
4
Q
Burden of tax: inelastic S, elastic D
A
Incidence of tax falls more heavily on producers than consumers
5
Q
Burden of tax: elastic S, inelastic D
A
Incidence of tax falls more heavily on consumers than producers
6
Q
What is a subsidy
A
Payment to buyers and sellers to supplement income or lower costs and which thus encourages consumption or provides an advantage to the recipient
