Suppose the Government Increases the Tax on Gasoline in Order

question 63

Multiple Choice

Suppose the government increases the tax on gasoline in order to raise revenue.Since raising the gasoline tax would increase the price of gasoline,what must the government be assuming

• A)The demand for gasoline is price elastic.
• B)The demand for gasoline is price inelastic.
• C)The demand for gasoline is price unit elastic.
• D)The demand for gasoline is price perfect elastic.

---

Definitions:

Gainsharing Plan

A performance-based compensation strategy that rewards employees for contributing to a company's success through increased productivity or cost savings.

Job Enlargement

The process of increasing the number and variety of tasks that an employee performs, aiming to reduce monotony and increase job satisfaction.

Natural Work Units

Groups in a work setting structured around common tasks or processes that allow employees to work effectively toward shared goals with minimal supervision.

Client Relationships

The dynamics and interactions between a business and its clients, emphasizing communication, trust, and satisfaction to foster long-term engagements.