Which of the Following Is an Example of a Transaction-Based

question 5

Multiple Choice

Which of the following is an example of a transaction-based tax?

• A) A tax on net business income
• B) An excise tax
• C) An estate tax on the transfer of assets at death
• D) Both an excise tax and an estate tax on the transfer of assets at death.

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Definitions:

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.

Efficient Share

The optimal allocation or distribution of resources and goods in a way that maximizes productivity and utility without waste.

Efficiently Used

Utilized in a manner that maximizes productivity or effectiveness while minimizing waste or unnecessary expenditure of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.