PT13.S4.Q21

PrepTest 13 - Section 4 - Question 21

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The town of Greenfield recently instituted a substantial supplementary tax on all households, whereby each household is taxed in proportion to the volume of the trash that it puts out for trash collectors to pick up, as measured by the number of standard-sized garbage bags put out. ██ █████ ██ ██████ ███ ██████ ██ ███ █████ ██ █████ █████ ███ ████ ██ ██████ ██████████ ██████████ ███ ███████ █████ ██████████ █████ ██ █ ████████████ ███████ █████ ██████████ █████████ ███████ █████ ████ █████ ██ ████████ ████ ██ ███████

Stimulus Summary

We're told about a new initiative instituted by the town of Greenfield. Households will incur a new tax based on the volume of trash they put out for collection. Specifically, this tax will be in proportion to the number of standard-sized garbage bags each household puts out. To reduce the volume of their trash, residents can take recyclable trash to a recycling center that will accept it for free.

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21.

The supplementary tax provides some █████████ █████████ ██ ██████████ ██████████ ██ ██ ████ ██ ███ █████████ ██████

a

sort out recyclable █████ ██████████ ████ █████ █████ █████
This isn't the answer choice we're looking for. Households do have a financial incentive to sort out their recyclable trash thoroughly, because doing so will reduce the volume of the trash remaining.
2%
b

dump nonrecyclable trash █████████ ██ █████ ███ █████████
This isn't the answer choice we're looking for. Households now do have a financial incentive to engage in illegal dumping, because it will reduce the volume of trash they leave out and so reduce the tax they incur. (If you picked (B) because it sounded unlikely, the question to ask for each of these answer choices is not "How likely is this action?" but "Does the new tax system provide a financial incentive to perform this action?").
8%
c

compress and nest █████ ██ █████████████ █████ ██████ ███████ ████ ███ ███ ██████
This isn't the answer choice we're looking for. Residents will be incentivized to do this in order to reduce the volume of their nonrecyclable trash, and so the number of bags they need to use
3%
d

deliver recyclable materials ██ ███ █████████ ██████ ███████ ██ ███████ ████ ██ ██ █████████ ███ ████ ██ █████ ████
This is the answer choice we want. The recycling center accepts recyclable materials for free, but so would the neighbors. In either case, the residents passing on the materials would have a lower volume of trash to leave out. So residents don't have a financial incentive to prefer taking their recyclables to the center instead of passing them on to neighbors.
85%
e

buy products without █████████ ██ ████ ██████████ ██████ ████ █████████████ █████████
This isn't the answer choice we want. Residents would have a financial incentive to do this, to reduce the volume of nonrecyclable trash they leave out.
1%

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