A Tax That Is Applied to One Specific Good or Service

question 128

Multiple Choice

A tax that is applied to one specific good or service is a(n) :

• A) sales tax.
• B) general local option sales tax.
• C) property tax.
• D) excise tax.
• E) wealth tax.

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Definitions:

Self-Interest Theory

A theory suggesting that individuals' decisions are motivated by personal gain or benefits, emphasizing the role of self-benefit in human behavior.

Hedonic

Related to or considered in terms of pleasant (or unpleasant) sensations.

Utilitarian

Relating to the ethical theory that actions are right if they are useful or for the benefit of a majority, focusing on the outcomes being beneficial for the greatest number of people.

Hunger Pangs

Physical sensations of discomfort or pain in the stomach area, typically indicating a need to consume food.