1
Q
Direct tax
A
Tax paid directly to government
2
Q
Fixed tax
A
Fixed amount of tax paid on each unit sold
3
Q
Vat
A
Ad valorem price, tax charged as a % of the price of a good
4
Q
Consumer surplus
A
the economic benefit consumers gain when the price they are willing to pay for a product exceeds the actual market price, representing extra value or satisfaction
5
Q
Producer surplus
A
the extra benefit producers gain from selling a product at the market price, which is higher than the minimum price they would have accepted (their marginal cost)
econ
flashcards
Decks in class (14)
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