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Which of the Following Best Explains the Distinction Between an Internal

Question 5

Multiple Choice

Which of the following best explains the distinction between an internal and an external tax?


A) The external tax is levied at the end of the year whereas the internal tax is levied at the moment of transaction.
B) External taxes had to be disclosed; internal ones did not.
C) External taxes applied to large capital goods; internal ones applied to domestic goods produced in the colonies.
D) External taxes were British import duties imposed under Parliament's legal authority to regulate international trade; while internal taxes were controversially imposed by Parliament on many domestic transactions within the colonies.
E) External taxes had to be paid directly to the king, internal ones to the colonial assembly.

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