In an Attempt to Reduce the Use of Gasoline, a City

question 54

Multiple Choice

In an attempt to reduce the use of gasoline, a city imposed a $2.50 per gallon tax on gasoline in 2010. A researcher working for the city located data on annual gallons used for the five years leading up to the gas tax (to provide a baseline) and located data for the five years after the start of the gasoline tax (to show the consumption pattern after the tax) . Which of the following best describes this study design?

• A) A-B-A-B design
• B) Changing-criterion design
• C) Interrupted time-series design
• D) Regression-discontinuity design

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.

Sunk Cost

A cost that has already been incurred and cannot be recovered. It should not impact future business decisions because it cannot be changed.

Depreciation

The reduction in the value of an asset over time, particularly regarding tangible assets like machinery and vehicles.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.