Which of the Following Types of Taxes Is Levied by Almost

question 100

Multiple Choice

Which of the following types of taxes is levied by almost all states on some or all goods purchased?

• A)Sales tax
• B)Income tax
• C)Property tax
• D)Wealth transfer tax

---

Definitions:

Inelastic

A characteristic of goods whose demand does not change significantly when the price of the good changes.

Prices

The amount of money required to purchase goods or services, often determined by factors such as supply and demand.

Maximizing Utility

The process by which individuals allocate their resources to obtain the highest possible satisfaction from their consumption.

Marginal Utility

The change in satisfaction or usefulness obtained by consuming one additional unit of a good or service.