If the Government Wanted to Reduce Alcohol Consumption in the United

question 100

Multiple Choice

If the government wanted to reduce alcohol consumption in the United States, would a state tax or federal tax be most effective?

• A) A state tax on alcohol consumption would be more effective because state taxes affect more buyers.
• B) A state tax on alcohol consumption would be more effective because the elasticity of demand is higher at the state level than at the federal level.
• C) A federal tax on alcohol consumption would be more effective because the elasticity of demand is higher at the federal level than at the state level.
• D) A federal tax on alcohol consumption would be more effective because suppliers cannot as easily avoid the tax simply by shipping alcohol to other states.

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Definitions:

PPOs

Preferred Provider Organizations, a type of health insurance plan that offers a network of healthcare providers you can use for your medical care.

Traditional Health Care

Healthcare practices based on historical and cultural traditions, often contrasting with contemporary Western medicine.

Flexible Benefit Plans

An employee benefits program that allows employees to choose from a variety of pre-tax benefits to construct a benefits package that best meets their needs.

T-test

A statistical examination aimed at determining whether there's a meaningful discrepancy between the means of two groups.