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

6630 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Discuss the consequences of imposing an indirect tax on a demerit good (unhealthy food)


Explain the impact that a fall in the world price of oil might have on aggregate supply and gross domestic product (GDP) in an economy.


Explain three difficulties economists face when they try to measure unemployment accurately.


The supply function for the production of good A is P=50+45Q. The demand function is P= 100-5Q. Find the equilibrium price and quantity.


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:

© 2025 by IXL Learning