Which of the Following Is TRUE of an Excise Tax

question 99

Multiple Choice

Which of the following is TRUE of an excise tax?

• A) An excise tax is always a unit tax.
• B) An excise tax is levied on purchases of particular good or service.
• C) An excise tax is based on an individual's income.
• D) Imposing an excise tax shifts the market demand curve.

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Definitions:

Negative State Relief Hypothesis

A theory suggesting that individuals help others in order to alleviate their own negative moods and feelings.

Empathy Gap

The difficulty in understanding or predicting the feelings and needs of others, especially when under emotional strain or in different states.

Empathy Underestimation

The phenomenon where individuals underestimate the capacity to understand and share the feelings of another person.

Moral Standards

A set of principles that govern what is considered right and wrong behavior.