A Certain State Legislature Is Considering an Increase in the State

question 89

Multiple Choice

A certain state legislature is considering an increase in the state gasoline tax.Representative Campbell argues that an increase in the gasoline tax would harm low-income drivers disproportionately.Representative Richards responds by saying that low-income drivers own smaller cars that use less gasoline,and that low-income drivers therefore would not be harmed disproportionately.

• A)Representative Campbell's argument is based primarily on efficiency,while Representative Richards' argument is based primarily on equality.
• B)Representative Campbell's argument is based primarily on equality,while Representative Richards' argument is based primarily on efficiency.
• C)Both representatives' arguments are based primarily on efficiency.
• D)Both representatives' arguments are based primarily on equality.

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Definitions:

Inventory Accounting Methods

Different approaches to valuing and managing inventory, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

FIFO Reserve

The difference between the cost of inventory calculated using the First In, First Out (FIFO) method and another inventory costing method.

LIFO Reserve

The difference between the cost of inventory calculated under the Last In, First Out (LIFO) method and its cost calculated under the First In, First Out (FIFO) method.

Ending Inventory

The value of goods available for sale at the close of an accounting period.