The alcabalas were indeed excise (sales) taxes imposed by the Spanish crown in its colonies. These taxes were meant to increase royal revenues but had the unintended effect of limiting the expansion of colonial markets due to the increased cost of goods and trade restrictions they imposed.

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The Alcabalas Were

Question 29

Multiple Choice

The alcabalas were

A) excise (sales) taxes that raised royal revenues, but limited colonial market expansion.
B) elected colonial town officials responsible for collecting royal taxes.
C) royal gifts of indigenous people, who were forced to pay tribute to local Spanish officials.
D) Spanish traditions that preserved the territorial integrity of the great estates.

Correct Answer: