When You Go to the Store to Purchase a New

question 73

Multiple Choice

When you go to the store to purchase a new MP3 player or cell phone you typically must pay a tax in addition to the listed retail price.This tax is an example of

• A)a value-added tax.
• B)a sin tax.
• C)an excise tax.
• D)a sales tax.
• E)a tariff.

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Definitions:

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).