Final answer:
b. Excise tax. The tax added to the price of certain items like alcohol, gasoline, or fishing equipment is known as an excise tax. Excise taxes are specific taxes imposed on the manufacture or sale of particular goods. They can be used to discourage consumption of certain products or to raise revenue.
Step-by-step explanation:
The tax added to the price of certain items like alcohol, gasoline, or fishing equipment is known as an excise tax. Excise taxes are specific taxes imposed on the manufacture or sale of particular goods. They can be used to discourage consumption of certain products or to raise revenue.
For example, a gasoline tax is an excise tax imposed on gasoline sales to discourage excessive fuel consumption and promote environmental sustainability. Similarly, a tax on alcohol and cigarettes is an excise tax aimed at reducing excessive consumption and public health risks associated with these products.
Unlike sales tax, which is a tax imposed on business transactions of goods and services, excise taxes specifically target certain goods and are often designed for specific purposes such as promoting public health or funding specific government programs.