23
QuizMultiple Choice

Fiscal Policy: Taxes — Quiz

Question 23 • Economics

A sales tax is a type of

Answer
A
direct tax.
B
progressive tax.
C
indirect tax.
D
proportional tax.

Explanation

A sales tax is paid when a consumer buys a good or service, and the business collects it and sends it to the government. Because the tax is collected indirectly through the seller rather than paid directly to the government by the consumer, it is an indirect tax.

AI-written and checked against the verified answer.

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