Distinguish between direct and indirect tax.

Direct taxes are taxes imposed on people's income or wealth, and on firms' profits.

Indirect taxes are also known as expenditure taxes, and are taxes consumers pay to a seller by buying the good and the seller then pays the tax to the government.

AS
Answered by Alexandra S. Economics tutor

7120 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Why do firms in perfect competition earn normal profit in the long run


Explain why the economy always returns to Yf in the new classical model.


Why are some government bonds negative?


Define the term monopoly and outline its characteristics.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning