1) Exemption of food purchases from a sales tax reduces regressivity. A: True B: False 2) Federal alcohol excise taxes are designed so that the alcohol content of beer and wine is taxed at a much lower rate than the alcohol content of distilled spirits. A: True B: False

1) Exemption of food purchases from a sales tax reduces regressivity. A: True B: False 2) Federal alcohol excise taxes are designed so that the alcohol content of beer and wine is taxed at a much lower rate than the alcohol content of distilled spirits. A: True B: False

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 5PA

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Question

1) Exemption of food purchases from a sales tax reduces regressivity.

A: True

B: False

2) Federal alcohol excise taxes are designed so that the alcohol content of beer and wine is taxed at a much lower rate than the alcohol content of distilled spirits.

A: True

B: False

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