An Example of a Tax Specifically Designed to Reduce Consumption

question 104

Multiple Choice

An example of a tax specifically designed to reduce consumption of a good is a tax on:

• A)chocolate.
• B)cigarettes.
• C)coffee.
• D)All of these are examples of a tax.

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Definitions:

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase efficiency and consistency in production.

Profitability Index

A financial metric that measures the return on investment for a project or investment relative to its cost.

Investment Projects

Initiatives undertaken by corporations or investors that involve significant capital outlay with the expectation of earning a return on investment over time.

Discount Factor

A multiplier used to determine the present value of future cash flows, reflecting the time value of money.