The City of Granby, Colorado Recently Enacted a 1

question 60

Multiple Choice

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

• A) A sin tax to discourage undesirable behavior
• B) A government fine
• C) An earmarked tax
• D) A sin tax to discourage undesirable behavior and an earmarked tax
• E) None of these

---

Definitions:

Misery Index

An economic indicator calculated by adding the unemployment rate to the inflation rate, aiming to measure the health of an economy.

Unemployment Rate

This measures the percentage of the labor force that is jobless and actively seeking employment.

Inflation

The velocity at which prices for various goods and services climb, which in turn diminishes the purchasing power.

Temporary-Help Industry

The sector of the workforce that provides temporary workers to businesses, often to fill temporary vacancies or peak workload times.