An Excise Tax

question 176

Multiple Choice

An excise tax

• A)is a sales tax on the purchase of a particular good or service.
• B)is a tax on the profits earned from the sale of an asset.
• C)represents a surcharge on corporate profits beyond the normal corporate tax rate.
• D)is a tax on income-earning rental property.

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Definitions:

Kahneman

Daniel Kahneman is a psychologist known for his work in the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the Nobel Prize in Economic Sciences.

System 1 Processes

Intuitive, automatic, immediate, and effortless thinking processes, as defined by psychologist Daniel Kahneman.

Instinctual

Relating to or based on instinct, innate and automatic responses to stimuli.

Gifted

Describing individuals who possess above-average intelligence or talents in specific areas.