Mankiw Argues That a Primary Difference Between Taxing Products Like

question 216

Multiple Choice

Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that

• A)consumption of gasoline causes negative externalities on society while consumption of soda affects the consumer.
• B)the government can generate significant revenue from the gas tax but not from a soda tax.
• C)gasoline has inelastic demand but soda has elastic demand.
• D)Both a and c are correct.

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