When CSU Sophomore Cody Clow and His Housemates Chose Not

question 99

Multiple Choice

When CSU sophomore Cody Clow and his housemates chose not to heed the city's ordinance against unreasonable noise and host a loud party at their off-campus residence last fall, they were confronted and ticketed by police. Fort Collins city code describes unreasonable noise as any sound that will "unreasonably interfere with the enjoyment of life or property." The method the local government used cope with the externality most closely resembles a

• A) tax.
• B) voucher.
• C) subsidy.
• D) cap-and-trade policy.

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Definitions:

Tax Base

The total amount of assets or revenue that a government can tax to fund its operations and services.

Sectors

Distinct parts or areas within an economy, characterized by a specific kind of activity, such as the agricultural, manufacturing, or service sector.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting low-income earners.