The Government Is Exploring Ways to Increase Revenues Through Taxation

question 42

Essay

The government is exploring ways to increase revenues through taxation.Lisette is an economic adviser to public policy makers,and they pose to her the following question: Should the government tax yachts or should it tax gasoline? Explain your answer using price elasticity of demand.

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Definitions:

Behaviour

The actions, reactions, or functioning of an organism, typically in response to its environment or stimuli.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society passed from one generation to another, including customs, practices, places, objects, artistic expressions, and values.

Heredity

The transmission of physical or mental traits from parents to their offspring through genetics.

Behaviour

The actions or reactions of an individual, usually in relation to the environment, which can be observed and measured from an objective standpoint.