Question

uiting as bne shits to the right The excise tax on gasoline is an example of: a) a unit tax b) an ad valorem tax c) a Groves-Clarke tax d) a head tax e) a lump-sum tax The following is usually NOT considered a function of taxes: a) correcting negative externalities b) reducing the shadow economy c) financing public goods d) reducing socio-economic inequalities e None of the remaining answers is correst

Answer 1

1) Solution: unit

Explanation: A tax on specific products and services; it is levied per unit of the good, rather than as a percentage of the sales

2) Solution: none of the remaining answers is correct

Explanation: The main purpose of taxation is to reducing negative externalities by taxing goods; reducing the shadow economy; financing public goods and removing inequalities