To Avoid an Increase in the Local Property Tax, Sullivan

question 69

Multiple Choice

To avoid an increase in the local property tax, Sullivan County, New York, proposed a 2 percent hotel tax, which presumably would be passed on to tourists. The hotel industry argued that the tax would hurt hotel business. They are really arguing that

• A)tourist and convention demand is inelastic, so hotel bookings will decline.
• B)tourist and convention demand is very elastic, so hotel bookings will decline.
• C)they would prefer a property tax increase instead.
• D)it is unfair to tax people who do not live in the area.

---

Definitions:

Projection

A defense mechanism in psychology where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Attributions

Explanations or reasons individuals give for the behaviors or outcomes, whether attributing them to internal dispositions or external circumstances.

Behavior

The actions, conduct, or response of an individual or group towards stimuli or in various situations.

Worker Turnover

The rate at which workers exit an organization and are subsequently replaced by new employees.