What Is the Major Difference Between a Sales Tax and an Excise

question 36

Multiple Choice

What is the major difference between a sales tax and an excise tax?

• A) Sales taxes are levied by state governments, while excise taxes are levied only by the federal government.
• B) Sales taxes are imposed on the purchase of a wide variety of items, while excise taxes are imposed on the purchase of a few specific items.
• C) Sales taxes must be collected by the seller, while excise taxes must be paid directly by the purchaser.
• D) Sales taxes are imposed on the purchase of tangible goods, while excise taxes are imposed on the purchase of services.

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Definitions:

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making, allowing for quick judgments and problem-solving despite the absence of complete information.

Visual Imagery

The process of visualization where an individual imagines visuals in their mind, often used in memory and creative processes.

Natural Concepts

encompass the mental representations of objects and events drawn from our experiences in the natural world, unlike artificial or constructed concepts.

Formal Concepts

Ideas or categories that are defined by specific rules or characteristics, often used in logic and mathematics.