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

Related Economics IB answers

All answers ▸

How do I write a Level 7 part (b) 15 mark answer for Paper 1?


Explain how a profit can be earned in the short run but not the long run in a perfectly competitive market.


Evaluate the advantages of perfectly competitive and monopolistic markets in the long run.


Explain the meaning of the law of demand; distinguish between movements along and shifts of the demand curve.