A Policy Maker Has Argued for Higher Taxes on Gasoline

question 28

Multiple Choice

A policy maker has argued for higher taxes on gasoline to reduce the negative externalities associated with driving. This policy will lead to a relatively ________ reduction in driving if demand is ________.

• A)small; perfectly elastic
• B)large; perfectly inelastic
• C)small; relatively inelastic
• D)large; relatively inelastic

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Definitions:

Form 940

A tax form used in the United States to report annual Federal Unemployment Tax Act (FUTA) tax details to the Internal Revenue Service (IRS).

Form 941

The IRS tax form used by employers to report quarterly federal income tax withheld and Social Security and Medicare taxes.

Weekly Timesheet

A record used to detail the number of hours worked by an employee during a specific week, often used for payroll purposes.

Billable

Charges or fees that can be invoiced to a client or customer, especially for time or services rendered.