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:

Goal Clarity

The extent to which the objectives or targets of an endeavor are clearly understood and defined.

Goal Difficulty

Refers to how challenging a set objective is to achieve, impacting motivation and strategy for accomplishment.

Management By Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.

Goal Clarity

The extent to which the objectives or targets one aims to achieve are defined, understood, and actionable.