Cima F1 Exam Question No 52

Question No 52:

Country X is considering an excise duty of $1,000 per vehicle on all new motor vehicles sold.

(i) A progressive tax
(ii) An indirect tax
(iii) An ad valorem tax
(iv) A regressive tax
(v) A unit tax

Which TWO of the above would be regarded as a correct description of the $1,000 excise duty?

A. (i) and (ii)
B. (ii) and (v)
C. (iii) and (iv)
D. (iv) and (v)

Answer: B