What does the term "hidden taxes" refer to in fiscal policy? 🔊
The term "hidden taxes" refers to taxes that are not immediately apparent to consumers but are embedded in the prices of goods and services. These taxes can include tariffs, excise taxes, and value-added taxes, which influence prices without direct visibility. As a result, consumers may not realize the extent of their tax burden when purchasing items. This concept highlights the complexities of fiscal policy and its implications for consumer behavior and overall economic awareness. Understanding hidden taxes is essential for analyzing the true costs of products.


Equestions.com Team – Verified by subject-matter experts