An Example of a Tax Specifically Designed to Reduce Consumption

question 141

Multiple Choice

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

• A)alcohol.
• B)cigarettes.
• C)gasoline.
• D)Taxes on all these goods are meant to reduce their consumption.

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Definitions:

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of labor, machinery, and equipment, oftentimes in a systematic and standardized process.

Job Order Production

A production system where products are manufactured based on specific orders rather than mass production.

Mass Production

The large-scale manufacturing of goods using standardized designs and assembly-line techniques to achieve greater efficiency.

Customized Production

A manufacturing process in which products are designed and produced to meet specific customer requirements.