this includes income tax, corporation tax and NI contributions. you have to pay these regardless
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indirect taxation
this includes VAT, excise duty, council tax and business rates which vary locally. because you choose how much you shop these taxes affect different individuals to different extents
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polluter pays principle
any measure such as a green tax, whereby the company/ organisation responsible for causing the pollution explicitly pays for it
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tradable permits
a permit that allows the owner to emit a certain amount of pollution and that if unused can be sold to another polluter.
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nudging
this means trying to get consumers / firms to change their behaviour without using laws, taxes or subsidies
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regulation
means laying down rules (in law) that require certain behaviours or restrict freedom of action to make economic decisions
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price ceilings
is setting a maximum legal price for a good
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price floor
is a legal minimum price of a good that can be set
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black market
is defined as economic activities, enterprises and workers that are not regulated or protected by the state and may be acting contrary to regulations
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secondary market
is a market that emerges alongside a primary market that is not working properly
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price controls
is when the government set maximum or minimum prices for a good or service
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state provision
is when the government supplies goods and services such as education, health and housing
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government failure
occurs when government intervention in markets leads to a net welfare loss in comparison to the free market operating alone
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provision of information
ensures that economic units can maximise decisions when consuming and producing goods and services
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the law of unintended consequences
means that unexpected events occur due to the government intervention
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market failure
is when the price mechanism leads to an inefficient allocation of resources and a dead weight of economic welfare
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economies of scale
firms benefit from producing in large amounts because average costs decreases
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Other cards in this set
Card 2
Front
indirect taxation
Back
this includes VAT, excise duty, council tax and business rates which vary locally. because you choose how much you shop these taxes affect different individuals to different extents
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