GOVERNMENT INTERVENTION Flashcards
(6 cards)
1
Q
define indirect tax
A
a levy imposed by the government on expenditure
2
Q
define subsidy
A
amount of money paid by the government to a firm per unit of output to reduce their costs of production
3
Q
definition of price maximum
A
a price set by the government below the equilibrium that firms may not legally charge above
4
Q
definition of price minimum
A
a price set by the government above the equilibrium that firms may legally not charge below
5
Q
command and control definition
A
rules imposed by the government that force consumers or firms to behave in a certain way by law
6
Q
consumer nudges definition
A
positive reinforcement and indirect suggestions to influence people’s decisions and actions, whilst still allowing them freedom of choice
