An Excise Tax Is a Tax on a Specific Good

question 132

True/False

An excise tax is a tax on a specific good, like gasoline.

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Definitions:

Individuals

Refers to single human beings, distinct from a group, class, or family.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Specialize

The process of focusing effort and resources on a narrow area of activity or field of study to gain efficiency or expertise.