A Freely Functioning Market

question 43

Multiple Choice

A freely functioning market

• A) will always be efficient.
• B) will fairly reward talent and punish the lazy.
• C) cannot be made more efficient with government intervention.
• D) maximizes freedom of choice.

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Definitions:

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.

Tax Revenue

Income that the government receives from taxation of individuals and businesses.

Excise Tax

A tax levied on specific goods, services, or activities, such as tobacco, alcohol, and gasoline, usually to discourage use or generate revenue.

Consumers

Individuals or entities that purchase goods and services for personal use.