Your Boss, the Mayor of a City, Thought That She'd

question 144

Essay

Your boss, the mayor of a city, thought that she'd come up with a great way to raise city revenue: increase the tax on gasoline in the city! However, she discovered that the city was actually receiving less tax revenue after the gas tax increase than before. Incensed, she declared that the economic policy prescription of taxing goods with inelastic demand must be flawed. Comment on her conclusion.

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Definitions:

Racial Profiling

The discriminatory practice by law enforcement officials of targeting individuals for suspicion of crime based on the individual's race, ethnicity, religion, or national origin.

Chris Rock

An American comedian, actor, writer, and producer known for his stand-up comedy and roles in film and television.

Driving While Black

A term that refers to the racial profiling and disproportionate stopping of African American drivers by police based on their race.

Demographics

Statistical data relating to the population and particular groups within it, often analyzed for social and economic research.