Answer to Question 1
An ideal response would be:
A general tax on sales transactions, sometimes exempting food and medicine is known as a sales tax.
There are two different kinds of state sales taxesthe general sales tax on most retail goods (many states exempt necessities like food and medicine from the general sales tax)and the selective sales tax (also called excise taxes) on specific items like motor vehicle fuel, alcohol, and tobacco products.
Answer to Question 2
TRUE