the supply curve will fall if heavy indirect taxes are imposed. A price will worsen the burden of suppliers which force them to cut the supply of goods.
GDP fc is the gross domestic product at factor cost. the production cost for the overall goods and services produced with in an economy. GDP at factor cost = GDP at market price + net indirect taxes net indirect taxes = subsidies - indirect taxes
These taxes are part of indirect taxes , though taxes are imposed on individuals and paid by individuals it is a macro concept which is dealt by the govt.... hence it is macro economics in charge of these taxes...... however indirect taxes are managed by the state govt...
Taxes can decrease the supply when they are raised and increase the supply when they are lowered. Subsidies, on the other hand, can raise the supply when raised and lower the supply when they are lowered.
Taxes can decrease supply by increasing production costs for businesses, leading them to produce less at any given price. Conversely, subsidies can enhance supply by lowering production costs or providing financial support, incentivizing businesses to produce more. Both taxes and subsidies can shift the supply curve, impacting market equilibrium prices and quantities. Ultimately, these tools influence producers' willingness and ability to supply goods and services in the market.
the supply curve will fall if heavy indirect taxes are imposed. A price will worsen the burden of suppliers which force them to cut the supply of goods.
direct taxes and indirect taxes(includes customs) -- both at state level and federal level.
The advantages of indirect taxes accrue only to the politicians who implement them. The disadvantages of indirect taxes are that they are hidden from the taxpayer.
Indirect taxes are a form of cost that goes into the final cost of the end product. Direct taxes paid would be sales taxes and such, but indirect taxes would be taxes paid by the manufacturer of goods that ultimately goes into the cost of goods sold.
Incidence of indirect taxes indicate how much burden of indirect taxes will be borne by the producers and how much by the consumers by way of rise in price.
why should we add indirect taxes and depreciation?
1. The allocative effects of direct taxes are superior to those of indirect taxes. 2. Direct taxes are progressive and they help to reduce inequalities. 3. The administrative costs of direct taxes are more than that of indirect taxes. 4. Direct taxes are more flexible than that of indirect taxes. 5. Indirect taxes are more growth oriented than direct taxes.
Indirect taxes are a form of cost that goes into the final cost of the end product. Direct taxes paid would be sales taxes and such, but indirect taxes would be taxes paid by the manufacturer of goods that ultimately goes into the cost of goods sold.
The difference between direct taxes and indirect taxes with examples is that direct taxes come directly from a person's income or personal property taxes. Indirect taxes comes from sales and excise taxes.
A direct tax is one that is taken directly from the individual, such as income tax. Indirect taxes, such as sales tax, are collected by merchants and taken from the consumer. Indirect taxes also lead to inequalities while direct taxes do not.
discuss the use of indirect taxes and subsidies by governments to deal witn externalities
GDP fc is the gross domestic product at factor cost. the production cost for the overall goods and services produced with in an economy. GDP at factor cost = GDP at market price + net indirect taxes net indirect taxes = subsidies - indirect taxes