An Excise Tax

question 189

Multiple Choice

An excise tax

• A) acts as a negative incentive to consume that good or service.
• B) is illegal in Florida, Georgia, and Alaska.
• C) is often used to encourage the use of a good.
• D) is a value added tax (VAT).

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Definitions:

Social Insurance

A government-sponsored program designed to provide financial protection to individuals against economic risks such as unemployment, disability, or old age.

TANF

A program funded by the federal government in the United States, Temporary Assistance for Needy Families assists impoverished families in reaching self-reliance.

Foreign-Born

Individuals who were born outside of the country in which they currently live, excluding those who were born to parents stationed abroad as part of diplomatic or military service.