Which of the Following Is True of an Excise Tax

question 67

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:

Safety Precaution

Measures taken in advance to prevent accidents or harm in potentially dangerous situations.

Upper Respiratory Infection

An infection affecting the upper part of the respiratory system, including the nose, throat, and bronchi, commonly known as the common cold.

PPE

Personal Protective Equipment; gear worn to minimize exposure to hazards that can cause serious workplace injuries and illnesses.

Contamination

The presence of unwanted substances or microorganisms in a material or environment, potentially causing harm or pollution.