How markets work:The price mechanism in action

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Cartel
An agreement between firms in a market on price and output with the intention of maximising their joint profits
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Indirect tax
A tax levied on expenditure on goods or services.
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Incidence of a tax
The way in which the burden of paying a sales tax is dived between the buyers and sellers.
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Subsidy
A grant given by the government to a business or firm in order to encourage production of a good or service.
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Opportunity cost
In decision making, the value of the next best alternative forgone.
5 of 5

Other cards in this set

Card 2

Front

A tax levied on expenditure on goods or services.

Back

Indirect tax

Card 3

Front

The way in which the burden of paying a sales tax is dived between the buyers and sellers.

Back

Preview of the back of card 3

Card 4

Front

A grant given by the government to a business or firm in order to encourage production of a good or service.

Back

Preview of the back of card 4

Card 5

Front

In decision making, the value of the next best alternative forgone.

Back

Preview of the back of card 5

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