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.

---

Definitions:

Assessment Instruments

Tools or methods used to evaluate, measure, or gauge an individual's abilities, skills, or attributes.

Semantic Differential

A type of scale used for measuring the meaning of things and concepts, involving a range of values between two opposites.

Rating Scale

A tool or method for assigning a value to a variable or characteristic, typically in the form of a survey or questionnaire that measures intensity, frequency, satisfaction, or agreement.

Quality

The characteristic or standard of something as measured against other things of a similar kind; the degree of excellence of something.