Economist: A tax is effective if it raises revenue and burdens all and only those persons targeted by the tax. █ ███ ██ ████████████ ████████ ██ ██ ████ ███ █████ ███████ ███ ██ █████ █ ███████████ ██████ ██ █████ ██ ████████
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.
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.
Which one of the following ██████████ ██ ████ ████████ █████████ ██ ███ ██████████ ██████ ██ ███ ██████████
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.
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.
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.
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.
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.
Answer five questions and we'll estimate your score.
It takes about five minutes.
Take the free diagnosticWant to know why the right answer is right?
7Sage membership unlocks explanations of every question. Every answer choice. On every official PrepTest. Start with a free account.
By signing up you agree to our
terms of service.
This site is protected by reCAPTCHA and the Google
Privacy Policy
and
Terms of Service
apply.