QUESTION 7

What is the major difference between a sales tax and an excise tax?

O Sales taxes are usually fixed amounts added to the price, while excise taxes are usually charged as a percentage of the purchase price

O Sales taxes are imposed on the purchase of a wide variety of items, while excise taxes are imposed on the purchase of a few specific items

O Sales taxes are imposed on the purchase of tangible goods, while excise taxes are imposed on the purchase of services

O All of the above are major differences between a sales tax and an excise tax

QUESTION 8

Which of the following describes a tax that meets the standard of convenience?

O A tax that the government can administer easily without excessive cost

O A tax that is easy for taxpayers to compute and pay

O A tax that permits taxpayers to compute their tax without incurring unnecessary costs

O All of the above describe a convenient tax