Final answer:
A tax assessed at each stage of production based on the value added is called a cumulative value-added tax, which is different from a sales tax or an excise tax that is specific to certain goods.
Step-by-step explanation:
A tax that is based on the total selling price and is assessed every time the goods change hands is known as a cumulative value-added tax. This type of tax is charged at each stage of the production and distribution process and is calculated based on the value added at each stage. It differs from a non-cumulative tax, which would be imposed just once, possibly at the final point of sale.
Sales taxes can sometimes be considered regressive because they take a larger percentage of income from low-income earners, as they tend to spend a higher proportion of their income on taxable goods. On the other hand, an excise tax is a specific type of tax levied on certain goods, such as tobacco, and has different implications for tax incidence and revenue depending on the elasticity of demand and supply.