The United States has a special tax on cigarettes. This tax is an example of:
an excise tax. a value-added tax. an excess-profits tax. a progressive tax.
The triangle of welfare loss that a sales tax on a specific item causes is:
equal to the revenue that the government collects. due to the costs of collecting and administering the tax. only occurs in a regressive tax, not a progressive one. due to the changes in behavior that the tax induces.