10
QuizMultiple Choice

Tax Basics

Question 10 • Financial Math - MA2007

Which of the following is considered a purchase tax?

Answer
A
income tax
B
Social Security
C
property tax
D
excise tax

Explanation

An excise tax is charged on the purchase or sale of specific goods, such as gasoline or tobacco. Income tax is based on earnings, Social Security tax is based on wages, and property tax is based on property value, so the correct choice is excise tax.

AI-written and checked against the verified answer.

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