What type of tax is applied to the consumption of a particular good or participation in an activity?

The correct answer is excise tax, as it specifically targets certain goods or activities rather than being a general tax applied to all purchases or income. An excise tax is levied on the sale of specific products, such as alcohol, tobacco, and fuel, or on certain activities, like gambling or highway usage. The purpose of an excise tax can often include both revenue generation and discouraging certain behaviors, such as consumption of harmful substances or overuse of resources.

Sales tax, while also related to consumption, is typically a broader tax applied to a wide range of goods and services at the point of sale, unlike excise tax, which is specific to select items. Property tax relates to ownership of real estate, and income tax is based on earnings. Thus, excise tax is the most accurate option when describing a tax that is tied to the consumption of specific goods or participation in discrete activities.