An excise tax is
A. levied on accounting profits not economic profits.
B. levied on salaries and wages but not investment income.
C. levied on the purchase of specific goods.
D. levied on purchases of goods in general excluding exempted goods that are considered necessities.
Answer: C
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Private schools are able to exclude students from attending classes they offer unless students have been accepted and paid tuition and fees. This suggests that education is
A) subject to the principle of rival consumption. B) subject to the free-rider problem. C) not subject to the exclusion principle. D) a public good.
Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
a. $800 billion. b. $1,000 billion. c. $1,300 billion. d. $1,500 billion. e. $1,800 billion.
Public enterprise is less prevalent in Europe than in the United States
a. True b. False
What quantity of output and price do they try to set, when a group of oligopoly firms form a cartel? Will there be any changes in the price and quantity supplied if the cartel gets broken down?
What will be an ideal response?