Self-study
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.
16.
Which one of the following ██████████ ██ ████ ████████ █████████ ██ ███ ██████████ ██████ ██ ███ ██████████
a
The tax on ██████████ ███████ █████ ███ ███ ████ ██ ███ ██████ ████████ ██ ███ █████ ██ ██ ██████ ████████ ███ ███ ██ ██████████
This answer is unsupported. This answer fails one of our sufficient conditions for a tax to be considered effective. We need both of the sufficient conditions in order for a tax to be considered effective.
b
The tax on ███████ ██████ █ ██████ ██████ ██ ████████ ███ ██ █████ █ ███████████ ██████ ██ █████ ██ ████████ █████ ███ ███ ██ ████████████
This answer is unsupported. This answer fails one of our sufficient conditions for a tax to be considered ineffective. We need both of the sufficient conditions in order for a tax to be considered ineffective.
c
The tax on ████████ █████ █ ███████████ ██████ ██ █████ ██ ████████ █████ ██ ██ ████ ███ █████ ████████ ███ ███ ██ ████████████
This answer is strongly supported. It meets both of our sufficient conditions we are given for a tax to be considered ineffective.
d
The tax on ████ ███████ ███ ██ ███ ██████ ████████ ██ ███ ███ ████ ███ ████ ███ ██████ ██████ ███ ██ ███ ████████ ██ ███ █████ ███ ███ ██ ██████████
This answer is unsupported. There are two sufficient conditions to be met in order for a tax to be considered effective. This answer only satisfies one of the two sufficient conditions.
e
The tax on █████ ████ ███ ████ █ ███████████ ██████ ██ █████ ██ ████████ ███ ██ ████ ███ █████ ███████ ███████ █████ ███ ███ ██ ████████████
This answer is unsupported. This answer fails one of our sufficient conditions for a tax to be considered ineffective. We need both of the sufficient conditions in order for a tax to be considered ineffective.