AS Paper 1, November 2020Introduction to Markets and Market Failure

AS Paper 1, November 2020, Q4(b)

Using an example, explain why the government imposes specific taxes on many goods and services.

Short answerExplain3 marks

Context

The UK Government uses a range of indirect taxes to affect the market prices and quantities of many goods and services.

Specification topics

Indirect taxes and subsidiesExternalities

Revision notes

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