... is a tax levied on goods and services rather than on income or profits
Indirect Taxes
1 of 8
A ... is a form of government intervention which usually involves a payment by the government to suppliers that reduce their costs of production and encourages them to increase output of a good or service
Subsidy
2 of 8
Impacts of indirect taxes on ... : The tax is usually passed onto ... depending on the elasticity of demand. Elastic demand will mean the producer pays most of the tax, however if demand is inelastic, the ... will pay most of the tax
Consumer
3 of 8
Impacts of indirect taxes on ... : ... are discouraged to produce harmful goods to the environment as it will cost them more. ... will see a rise in production costs and elastic demand will mean that ... pay more of the tax
Producers
4 of 8
Impacts of Indirect taxes on ... : The ... will receive more tax revenue with indirect taxes when the economy grows, however, if there is elastic demand, the ... will receive less tax revenue as the quantity consumed will be lower
Government
5 of 8
Impacts of Subsidies on ... : The price of a good or service will be lower for ... if there is a subsidy. This means that the ... demand can increase and they can buy more of a good for the same price
Consumers
6 of 8
Impacts of subsidies on ... : The costs of production for ... will decrease meaning they can increase output and their overall revenue when they don't pay all the production costs
Producers
7 of 8
Impacts of subsidies on ... : The .. will lose money as sometimes they give the money for the subsidy meaning they will have less money and the overall tax revenue will decreas
Governments
8 of 8
Other cards in this set
Card 2
Front
A ... is a form of government intervention which usually involves a payment by the government to suppliers that reduce their costs of production and encourages them to increase output of a good or service
Back
Subsidy
Card 3
Front
Impacts of indirect taxes on ... : The tax is usually passed onto ... depending on the elasticity of demand. Elastic demand will mean the producer pays most of the tax, however if demand is inelastic, the ... will pay most of the tax
Back
Card 4
Front
Impacts of indirect taxes on ... : ... are discouraged to produce harmful goods to the environment as it will cost them more. ... will see a rise in production costs and elastic demand will mean that ... pay more of the tax
Back
Card 5
Front
Impacts of Indirect taxes on ... : The ... will receive more tax revenue with indirect taxes when the economy grows, however, if there is elastic demand, the ... will receive less tax revenue as the quantity consumed will be lower
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