Which of the Following Is an Example of an Activity-Based

question 39

Multiple Choice

Which of the following is an example of an activity-based tax?

• A) A tax on business' net income
• B) An excise tax
• C) A gift tax on the transfer of assets by gift
• D) Both a tax on business' net income and a gift tax on the transfer of assets by gift

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Definitions:

Genetic Varieties

The range of genetic differences within a species, contributing to variations in physical appearance, behavior, and resistance to diseases.

Aquifers

Underground layers of rock or sediment that hold groundwater, which can be extracted using wells.

Subsidence

Occurs when a portion of Earth’s surface gradually settles downward.

Saltwater Intrusion

The movement of saline water into freshwater aquifers, which can lead to contamination of drinking water sources and other consequences.