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Question 18N.1.SL.TZ0.2a

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Date November 2018 Marks available [Maximum mark: 10] Reference code 18N.1.SL.TZ0.2a
Level SL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18N.1.SL.TZ0.2a
(a)

Explain two reasons why a government might impose an indirect tax on a good.

[10]

Markscheme

Answers may include:

  • definition of indirect tax
  • diagram to show the impact of an indirect tax on a good
  • explanation that governments impose indirect taxes on goods to raise revenue, reduce consumption of demerit goods and reduce the negative externalities of production
  • examples of situations where governments impose indirect tax.

NB Candidates who only explain one reason should not be awarded marks beyond level 2.

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Syllabus sections