A Tax Levied on Purchases of a Particular Good or Service

question 84

Multiple Choice

A tax levied on purchases of a particular good or service

• A) is illegal because it is discriminatory.
• B) always leads to a reduction in total tax revenues.
• C) always leads to an increase in total tax revenues.
• D) is an excise tax.

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Definitions:

Parallelogram Linkage

A linkage in the form of a parallelogram that connects a recirculating ball gearbox to the steering knuckle.

Suspension

The system in a vehicle that connects the wheels to the rest of the car, providing a smooth ride by absorbing bumps and vibrations from the road.

Gearbox

A mechanical device used in vehicles for varying power transmission and torque between the engine and the wheels, often by utilizing gears of different sizes.

Steering Linkage

A group of parts in the steering system that transmit motion from the steering gear to the wheels, enabling directional control of the vehicle.