taxes

Question 1

indirect tax

Answer 1

Taxes on consumption.

Question 2

specific tax

Answer 2

Taxes paid per unit. They increase the cost of production by the tax amount on each unit and leads to a decrease in supply

Question 3

AD valorem tax

Answer 3

Based on the value of the good being sold. They increase the price by a fixed percentage.

Question 4

direct tax

Answer 4

tax on wealth or income