Final answer:
Inefficiency does not occur directly due to an excise tax. It is a tax on the sale or production of certain items designed to raise revenue for the government.
Step-by-step explanation:
False, inefficiency does not occur directly due to an excise tax.
An excise tax is a tax on the sale or production of certain items, such as gasoline or liquor.
It is designed to raise revenue for the government and can affect the price of the taxed goods.
However, inefficiency can occur in the economy due to various factors such as market imperfections, externalities, or government interventions.