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Fiscal Policy: Taxes

Question 7 • IL-Economics

Taxes placed on specific goods, such as gasoline, by federal and state governments are .

Answer
A
excise taxes
B
corporate taxes
C
tariffs

Explanation

Taxes charged on particular goods or services are called excise taxes. Gasoline is a specific good, so a tax placed on it by federal or state governments is an excise tax. Corporate taxes are levied on business profits, while tariffs are taxes on imported goods.

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