Micro 8

Question 1

Incidence of tax

Answer 1

The tax burden on the taxpayer

Question 2

Specific tax

Answer 2

A tax imposed on a good where the value of the tax is dependent on the quantity that is bought

Question 3

Indirect tax

Answer 3

Taxes on expenditure which increase production costs and leads to a fall in supply

Question 4

Subsidy

Answer 4

Government payments to a producer to lower their costs of production and encourage them to produce more