​Use the Following Table for Question

question 63

Multiple Choice

​Use the following table for question

-​If the government could raise taxes on one good,which product should the government increase tax rates in order to raise tax revenue?

• A)​Cigarettes
• B)Alcohol
• C)Sodas
• D)​None of the above

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Definitions:

Inflation Rate

A rise in the cost percentage of goods and services in an economy during a certain period.

Depreciate

The gradual reduction in the economic value of tangible fixed assets due to wear and tear over time.

Euro

The Euro is the official currency of the Eurozone, used by 19 of the 27 European Union countries.

Real Exchange Rate

The rate at which two currencies can be exchanged after adjusting for their differing levels of inflation.