The Essential Difference Between Sales and Excise Taxes Is That

question 198

Multiple Choice

The essential difference between sales and excise taxes is that

• A)sales taxes apply to a wide range of products,while excise taxes apply only to a select group of products.
• B)excise taxes apply to a wide range of products,while sales taxes apply only to a select group of products.
• C)sales taxes are consumption taxes,while excise are not.
• D)excise taxes are consumption taxes,while sales are not.

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Definitions:

Excess Capacity

A situation where a business has more production facilities, resources, or capability than currently needed to meet demand.

Nonprice Competition

Competitive strategies used by companies to attract customers through methods other than lowering prices, such as product quality, service, and marketing.

Variety

Refers to the range of different products, services, or choices available in a particular area or sector.

Monopolistic Competition

A trading structure with many entities vending items that are akin but not identical, providing them with some form of market authority and the option to set their products apart.