A national parks agency proposes a tax on disposable coffee cups. The government expects the tax to increase their price and fund river-cleaning projects. (...
Question 1 Report
A national parks agency proposes a tax on disposable coffee cups. The government expects the tax to increase their price and fund river-cleaning projects.
(a) Which government objective is directly supported by the river-cleaning projects? [1]
(b) Explain how the tax may decrease environmental damage. [2]
(c) State one possible disadvantage for low-income consumers. [1]
Answer Details
(a) River-cleaning projects directly support environmental protection, or sustainable development. [1]
(b) The tax raises the price of disposable coffee cups. [1] Consumers may buy fewer disposable cups or switch to reusable cups, reducing waste and environmental damage. [1]
(c) The tax may be regressive: it takes a larger proportion of the income of low-income consumers, reducing their real disposable income. [1]
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