Suppose That a Policy Maker Knows There Are Currently 1,000

question 9

Multiple Choice

Suppose that a policy maker knows there are currently 1,000 cars purchased each year in the city. In order to build a new park next year, which will cost $500,000, the policy maker decides to impose a tax of $500 on each car purchased. Which of the following scenarios is most likely to occur?

• A) The $500 tax will disincentivize car purchases, and fewer than $500,000 will be raised.
• B) The $500 tax will have no effect on car purchases, and the $500,000 will be raised.
• C) Knowing the purpose of the $500 tax, more people will be incentivized to make car purchases, and the park will be funded.
• D) The $500 tax is a sunk cost and thus will be ignored by people making car purchases.

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Definitions:

Language Progress

The development and improvement over time in an individual’s ability to understand and produce language.

Educational Quality

The measure of the effectiveness, efficiency, and equity of education in meeting the learning or educational needs of students.

Child-Centered Program

An educational approach that focuses on the individual child's needs, interests, and developmental stage rather than on predetermined curriculum standards.

Preschool

An educational establishment or learning environment for children typically between the ages of 3 and 5, prior to the start of compulsory education at primary school.