Define an Excise Tax and Give Three Examples

question 27

Essay

Define an excise tax and give three examples. Explain the relationship between a tariff and an excise tax. Use supply and demand analysis to explain why the equilibrium price of apples will rise and the equilibrium quantity will fall if an excise tax is levied on apples. Explain why the price of apples will not rise by the full amount of the tax.

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Definitions:

Immunizations

The process by which a person becomes protected against a disease through vaccination.

Well-Balanced Diet

A diet that contains the correct proportions of carbohydrates, fats, proteins, vitamins, and minerals for optimal health and function.

Epidemic

The rapid spread of an infectious disease to a large number of people within a short period of time, geographically localized.

Computed Tomography (CT)

A medical imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to create cross-sectional images of the body.