Many Environmentalists Have Advocated a Substantial Increase in the Gasoline

question 39

Multiple Choice

Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions.Such a tax increase would be devastating to people who commute significant distances to work.In fact, it would provide an incentive to relocate closer to work or change jobs.Economists refer to such effects of taxes as the

• A)burden of a tax.
• B)regressive incidence of a tax.
• C)incidence of a tax.
• D)excess burden of a tax.

---

Definitions:

Income

The money received by a person or organization for work, goods, or investments, representing the flow of cash or cash-equivalents.

Twizzlers

A brand of fruit-flavored candy, known for its twisted shape and chewy texture.

Indifference Curves

Graphs that represent combinations of goods that provide a consumer with the same level of satisfaction, illustrating preferences.

Chocolate Milk

A flavored milk beverage made by mixing cocoa, sugar, and milk, often consumed as a sweet treat or post-workout recovery drink.