This Year 12 Recap video centers around the topic of Indirect Taxation.
Indirect taxes are one of the central policy tools which can be used by a government to influence the outcome in the market to help nudge the equilibrium closer to the social optimum. The knowledge of this concept is crucial, as when discussing potential remedies for markets that fail to allocate scarce resources effectively, this simple but effective policy tool can be discussed.
An indirect tax is a tax levied by the government upon the consumption of goods and services. This provides the government with a source of revenue for financing expenditure plans, but also helps reduce the consumption of goods which produce an external cost upon consumption/production. Students can also build upon the initial theory of indirect taxes to discuss the potential relative burden which is shared by agents in the market.
Here Jack guides you around the topic of Indirect Taxation:
Our Year 12 recap is supported by our new awesome revision mindmaps. Find out more about them and how teachers and students can access them by clicking here.
EzyEconomics is the ultimate online A Level Economics support service. Schools can enjoy a free 30-day trial to see for themselves how EzyEconomics can support their teaching and help their students achieve better grades. Register now to start your EzyEconomics journey!