PT121.S4.Q16

PrepTest 121 - Section 4 - Question 16

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Economist: A tax is effective if it raises revenue and burdens all and only those persons targeted by the tax. █ ███ ██ ████████████ ████████ ██ ██ ████ ███ █████ ███████ ███ ██ █████ █ ███████████ ██████ ██ █████ ██ ████████

Summary

If a tax raises revenue and burdens only people targeted by the tax, then then tax is effective. If a tax does not raise revenue and it costs a significant amount of money to enforce, then the tax is ineffective.

Strongly Supported Conclusions

If a tax is ineffective, then it either does not raise revenue or it does not burden all and only people targeted by the tax.

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16.

Which one of the following ██████████ ██ ████ ████████ █████████ ██ ███ ██████████ ██████ ██ ███ ██████████

a

The tax on ██████████ ███████ █████ ███ ███ ████ ██ ███ ██████ ████████ ██ ███ █████ ██ ██ ██████ ████████ ███ ███ ██ ██████████

b

The tax on ███████ ██████ █ ██████ ██████ ██ ████████ ███ ██ █████ █ ███████████ ██████ ██ █████ ██ ████████ █████ ███ ███ ██ ████████████

c

The tax on ████████ █████ █ ███████████ ██████ ██ █████ ██ ████████ █████ ██ ██ ████ ███ █████ ████████ ███ ███ ██ ████████████

d

The tax on ████ ███████ ███ ██ ███ ██████ ████████ ██ ███ ███ ████ ███ ████ ███ ██████ ██████ ███ ██ ███ ████████ ██ ███ █████ ███ ███ ██ ██████████

e

The tax on █████ ████ ███ ████ █ ███████████ ██████ ██ █████ ██ ████████ ███ ██ ████ ███ █████ ███████ ███████ █████ ███ ███ ██ ████████████

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