Which Tax Is an Example of a Tax on Consumption

question 16

Multiple Choice

Which tax is an example of a tax on consumption?

• A) capital gains tax
• B) individual income tax
• C) property tax
• D) excise tax

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Definitions:

Bond Owners

Individuals or institutions that hold debt securities issued by corporations or governments, entitling them to receive fixed interest payments.

Government Policy

The actions taken by a government to influence or control various aspects of its economy or society.

Taxes On Saving

Charges imposed by government on the interest earned from savings in financial institutions.

National Saving

The total amount of saving in a country, which includes both private savings and public (government) savings.