indirect taxation 1.2.9

Question 1

indirect taxs

are imposed by…

Answer 1

by the government and increase production costs for
producers.

Therefore, producers supply less. This increases market price and demand contracts

Question 2

direct tax

Answer 2

taxes on income that cant be transferred

income tax, national insurance, corporation tax

Question 3

indirect tax

Answer 3

expenditure taxes that increases cost of production for firm but can be transferred to customers via higher prices

Question 4

specific indirect tax

Answer 4

are a set tax per unit

wine duty

Question 5

AD valorem tax

Answer 5

taxes as a percentage of price