Taxes & Subsidies Flashcards
0
Q
Subsidy
A
A payment given by the government to a firm to reduce their costs of production this encouraging consumption/production.
1
Q
Definition of Subsidy
A
A payment given by the government to a firm to reduce their costs of production this encouraging consumption/production.
2
Q
Definition of Indirect Tax
A
A tax on expenditure goods. e.g. tax on alcohol, cigarettes and petrol.
3
Q
Definition of Direct Tax
A
A tax that is levied on income or profits of the person who pays it, rather than on goods and services
