Which of the Following Is TRUE of an Excise Tax

question 99

Multiple Choice

Which of the following is TRUE of an excise tax?

• A) An excise tax is always a unit tax.
• B) An excise tax is levied on purchases of particular good or service.
• C) An excise tax is based on an individual's income.
• D) Imposing an excise tax shifts the market demand curve.

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Definitions:

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Flash Reports

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Optimal Transfer Price

The price that should be charged for goods or services transferred between divisions of the same company to maximize overall company profit.

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