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Fiscal Policy: Taxes

Question 6 • IL-Economics

Taxes collected on purchased goods, such as clothing, by state and local governments are .

Answer
A
excise taxes
B
sales taxes
C
tariffs

Explanation

State and local governments collect sales taxes when consumers buy goods such as clothing. Excise taxes apply to specific products or activities, while tariffs are taxes on imported goods. Therefore, the correct choice is sales taxes.

AI-written and checked against the verified answer.

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