Logical Reasoning

PT121 · S4 · Q16 Economist: A tax is effective

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Economist: A tax is effective if it raises revenue and burdens all and only those persons targeted by the tax.

Principle 1 (can prove "effective")

raises revenue and → effective burdens only those targeted

Principle 2 (can prove "ineffective")

doesn't raise revenue and → ineffective costs signif amt to enforce

Goal

If an answer is concluding that something is effective, we'll look to see whether it satisfies both conditions of principle 1.

If it's concluding that something is ineffective, then we'll look to see whether it satisfies both conditions of principle 2.

16.

Which one of the following inferences is most strongly supported by the principles stated by the economist?

  1. The tax on cigarettes burdens

    Half Scope

    This is concluding "effective", so we look to Principle 1. 1. raises revenue? Check. 2. Burdens all and only those targeted? Not quite. It burdens most but not all of those targeted.

    4% picked this

  2. The tax on alcohol raises

    Half Scope

    This is concluding "ineffective", so we look to Principle 2. 1. costs signif money to enforce? Check. 2. doesn't raise revenue? Nope, it fails that one. This says that it does raise revenue.

    6% picked this

  3. Correct

    The tax on gasoline costs

    Why this is right

    This is concluding "ineffective", so we look to Principle 2. 1. costs signif money to enforce? Check. 2. doesn't raise revenue? We don't know. But if it turns out that it doesn't raise revenue, then we'll have checked both boxes and be able to say that it's ineffective. Thus, the conclusion is correct to think, "If doesn't raise revenue, then ineffective".

    Skill tested: Principle-Conform · how this choice captures the argument's function is the move to repeat next time.

    74% picked this

  4. The tax on coal burdens

    Half Scope

    This is concluding "effective", so we look to Principle 1. 1. Burdens all and only those targeted? Check 2. Raises revenue? [crickets] Since we haven't checked that second box, we can't yet conclude effective.

    11% picked this

  5. The tax on steel does

    Half Scope

    This is concluding "ineffective", so we look to Principle 2. 1. doesn't raise revenue? Check. 2. costs signif money to enforce? Nope. It says the opposite.

    5% picked this

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