Taxation

Question 1

Governments use Indirect Taxes to affect the Supply of some goods/services part 1

Answer 1

there are two types of tax: specific and ad valorem

Question 2

Governments use Indirect Taxes to affect the Supply of some goods/services part 2

Answer 2

look at the next section on page 90

Question 3

Governments tax goods with negative externalities

Answer 3

look at page 90

Question 4

The total amount of tax paid can be shown on a diagram

Answer 4

look at page 91

Question 5

There are advantages of this kind of tax

Answer 5

purple section

Question 6

There are disadvantages of this kind of tax

Answer 6

blue/greeny section