alleryStart learning →A tax imposed on a particular good, such as gasoline or tobacco, is called an:
APayroll tax
BProperty tax
CExcise tax
DIncome tax
Answer & Solution
Correct answer: C. Excise tax
1. Some taxes target specific products.
2. The federal government imposes several kinds of tax.
3. It imposes an excise tax, that is, a tax on a particular good.
4. Gasoline, tobacco and alcohol are the examples given.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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