On What Type of Products Do Governments Impose "Sin" Taxes

question 87

Multiple Choice

On what type of products do governments impose "sin" taxes?

• A)On products with elastic demand such as candy.
• B)On products with inelastic demand such as alcohol.
• C)On illegal products.
• D)On consumer goods but not capital goods.

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Definitions:

Social Phobia

An anxiety disorder characterized by an intense fear of social situations, leading to avoidance of such situations and significant distress.

Post-Traumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

Situational Phobia

A type of anxiety disorder characterized by an intense, irrational fear of specific situations, places, or events that poses little to no actual danger.

Intense Fear

A strong, uncontrollable, and often irrational emotion experienced in anticipation of some specific pain or danger.