The City of Granby,Colorado Recently Enacted a 1

question 18

Multiple Choice

The city of Granby,Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school.This surcharge is an example of ________.

• A)A sin tax to discourage undesirable behavior
• B)A government fine
• C)An earmarked tax
• D)A sin tax to discourage undesirable behavior and an earmarked tax
• E)None of these

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Definitions:

Borrowed

Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.

Demand

The quantity of goods or services that consumers are willing and able to purchase at various prices during a given time period.

Rent Control

Government policies or laws that limit the rent landlords can charge for housing, intended to make housing affordable.

Price Ceiling

A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising above a certain level.