Unit 2.7 · Role of Government in Microeconomics
Indirect Taxes
AO2AO4Diagram required
Syllabus Requirement
Taxes imposed on goods and services to raise revenue or discourage consumption (e.g. cigarettes, alcohol).
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
Indirect taxes are levies imposed on the spending of goods and services, serving as a source of revenue for governments. These taxes can influence market behavior and are part of broader government interventions aimed at supporting firms and managing economic activity.