taxes Flashcards
1
Q
indirect tax
A
Taxes on consumption.
2
Q
specific tax
A
Taxes paid per unit. They increase the cost of production by the tax amount on each unit and leads to a decrease in supply
3
Q
AD valorem tax
A
Based on the value of the good being sold. They increase the price by a fixed percentage.
4
Q
direct tax
A
tax on wealth or income
