A Sales or Excise Tax

question 25

Multiple Choice

A sales or excise tax

• A) shifts the supply curve upward by the amount of the tax.
• B) is rarely paid by the consumer if demand is insensitive to price.
• C) is another name for a supply-side tax.
• D) increases the quantity sold in the market.
• E) has a very high collection cost relative to its yield.

---

Definitions:

Somatic Nervous System

A part of the peripheral nervous system that handles voluntary control of body movements through the action of skeletal muscles.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, regulating functions such as heart rate, digestion, and respiratory rate.

Peripheral Nervous System

The portion of the nervous system lying outside the brain and spinal cord, which includes nerves that branch out to the rest of the body, facilitating communication between the body and central nervous system.

Central Nervous System

The primary information-processing center of the body, consisting of the brain and spinal cord.