Some economists advocate a ____________ on the consumption of such products as gasoline, liquor, cigarettes, and even soda pop, in the hope that consumers will think about how their purchases are having negative impacts on themselves and their environment.
A) progressive tax
B) sin tax
C) flat tax
D) tax credit

Question

Quizplus · Accepted Answer

The term "sin tax" refers to taxes imposed on products that are considered harmful to individuals or society, such as cigarettes or alcohol. Advocates of sin taxes believe that they can have a deterrent effect on consumption by increasing the cost of these products and prompting consumers to consider the negative consequences of their choices. A progressive tax is a tax rate that increases as income increases, while a flat tax is a tax rate that remains the same regardless of income. A tax credit is a reduction in the amount of tax owed by an individual or business based on specific criteria.

Some Economists Advocate a ____________ on the Consumption of Such