Year 1 Part 3 Flashcards
(23 cards)
“I____ taxes are levied on producers but often passed to consumers via higher prices.”
“Indirect.”
“A ____ tax is a % of the good’s value (e.g.+ VAT).”
“Ad valorem.”
“A ____ tax is a fixed amount per unit (e.g.+ sugar levy).”
“Specific.”
“Tax incidence falls more on consumers if demand is price ____.”
“Inelastic.”
“Taxes on cigarettes aim to reduce ____ externalities in consumption.”
“Negative.”
“Subsidies shift the supply curve to the ____ to lower prices.”
“Right.”
“Subsidies correct ____ externalities (e.g.+ vaccines).”
“Positive.”
“A drawback of subsidies is their high ____ cost (e.g.+ taxpayer funds).”
“Opportunity.”
“A price ____ (e.g.+ min wage) set above equilibrium causes surplus.”
“Floor.”
“Rent controls are an example of a price ____.”
“Ceiling.”
“Pollution permits aim to limit ____ externalities in production.”
“Negative.”
“Compulsory cigarette labels address ____ failure.”
“Information.”
“P____ self-interest: Politicians may prioritize re-election over public welfare.”
“Political.”
“R____ capture occurs when regulators favor producers over consumers.”
“Regulatory.”
“The law of ____ consequences leads to unplanned outcomes (e.g.+ tax evasion).”
“Unintended.”
“Policy ____ results from short-term fixes ignoring long-term solutions.”
“Myopia.”
“CAP (Common Agricultural Policy) is criticised for ____ capture.”
“Regulatory.”
“High income taxes may cause a ____ drain of skilled workers.”
“Brain.”
“HS2’s cancellation highlights ____ of major projects.”
“Costs.”
“A ____ tax internalises external costs (e.g.+ carbon tax).”
“Pigouvian.”
“S____ are grants to boost merit good consumption.”
“Subsidies.”
“G____ F____ occurs when intervention worsens welfare.”
“Government Failure.”
“The ____ problem makes public goods under-provided.”
“Free-rider.”
