An indirect tax is imposed on a product. Which effect is most likely in that market?
Demand shifts right and price falls
Supply shifts right and quantity rises
Demand shifts left by the full amount of the tax
Supply shifts left, tending to raise price and reduce quantity
30 exam-style questions on OCR GCSE Economics 3.5 Fiscal policy, covering 3.5.1 Government spending and revenue, 3.5.2 Budget balance, surplus and deficit, 3.5.3 What is fiscal policy, 3.5.4 Calculate effects of taxes and spending, 3.5.5 Analyse effects of taxes and spending, 3.5.6 Costs and benefits of fiscal policy, and 3.5.7 Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.