Economics B A-Level
Indirect taxation
What Indirect taxation means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Indirect taxation
Check what you remember
Read the wording for your board, then hide it and explain Indirect taxation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A tax levied on goods and services that increases the cost of production for goods with negative externalities, shifting the supply curve left to internalise the external cost.
Topics that use Indirect taxation
- Government intervention and failure (Pearson Edexcel A-Level)
Related terms
- Government failure
- Information gaps
- Resource allocation
- Social welfare
- Economic efficiency
- Legislation
- Regulation
- Unintended consequences
Using Indirect taxation in the exam
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