An excise tax that the government collects from the producers of a good:

A) shifts the supply curve upward.
B) reduces revenue for the government.
C) has an effect similar to that of a tax subsidy.
D) shifts the supply curve downward.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as gasoline, tobacco, and alcohol for revenue or to discourage consumption.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good supplied by producers.

Tax Subsidy

A government benefit that effectively reduces the tax that a business or individual owes.