Which of the following is an earmarked tax?

Select one:

a. A tax that generates revenues that the government can spend for any purpose

b. A tax that generates revenues that the government can spend only to build more National Parks

c. A tax imposed on the purchase of specific items such as liquor or cigarettes

d. A tax imposed only on individuals who earn more than $1 million annually

Which of the following is an example of an activity-based tax?

Select one:

a. A tax on business' net income

b. A gift tax on the transfer of assets by gift

c. An excise tax

d. Both a tax on business' net income and a gift tax on the transfer of assets by gift