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Cambridge IGCSE Economics

2.10.3bIndirect taxation and subsidies

Indirect taxation and subsidies in Cambridge IGCSE Economics: what the syllabus expects you to know, the learning objectives and how to practise.
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Learning objectives

What the syllabus expects you to be able to do.

  1. 2.10.3bDefine indirect taxes and subsidies, draw and interpret their diagrams and explain their advantages and disadvantages in addressing market failure.

Lessons

  • Indirect taxes and subsidies in product markets

    30 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Indirect taxation and subsidies: sample question

1 mark

The government gives producers of solar lamps a subsidy for each lamp sold. What is the most likely effect on the market for solar lamps?

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