Concept:A tax charged at every stage whenever goods or services change hands is a value added tax.
Explanation:Value added tax is a consumption tax imposed on the increase in value of a product at each stage of its production or distribution.
It applies at each point of exchange, from the manufacturer to the wholesaler, then to the retailer, and finally to the consumer.
At every stage, the tax is calculated only on the value added at that particular stage, not on the full selling price.
This makes it different from a specific tax, which is fixed per unit, and from a direct tax, which is paid directly to the government by the individual.
Therefore, the tax that applies generally at each point of exchange of goods and services is value added tax.
Answer:C. value added tax