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Ad valorem tax
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It means a percentage of the total expenditure is taxed.
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Indirect taxes
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Taxes on expenditure of goods and services that are added to the selling price of a good or service e.g. sales tax
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Price ceiling/maximum price
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It refers to setting of the price lower than the market equilibrium by the government and no seller can sell the goods at a price higher than this.
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Price control
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Setting of the price above or below the market equilibrium by the government.
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Price floor/minimum price
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It refers to setting of the price higher than the market equilibrium by the government and no seller can sell the goods at a price lower than this.
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Specific tax/per unit teax
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It means a fixed amount of tax is added on the goods or services.
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Subsidies
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Grants provided by the government to firms aiming at lowering production costs and increasing output.
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Tax incidence/tax burden
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It refers to the eventual tax payment by a specific party.
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