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Multiple Choice
When you buy specific items like cigarettes, alcohol, airline tickets, or gas, you will pay:
A
a property tax
B
a sales commission
C
a payroll tax
D
an excise tax
Verified step by step guidance
1
Understand the definition of an excise tax: it is a tax imposed on specific goods or services, often those considered harmful or luxury items, such as cigarettes, alcohol, airline tickets, or gasoline.
Recognize that a property tax is a tax on the ownership of property, not on the purchase of specific goods.
Know that a sales commission is a fee paid to a salesperson or agent, not a tax imposed by the government.
Identify that a payroll tax is a tax on wages paid by employers and employees, unrelated to the purchase of goods.
Conclude that the tax paid when buying specific items like cigarettes or alcohol is an excise tax, which is a per-unit or percentage tax on the sale of particular goods.