Chapter 5 Elasticity—Around the World

Read the following articles and pages in order to answer the below questions.

"Despite Tax, Mexico Soda Sales Pop", WSJ
"Why Exxon Mobil would support a carbon tax", The Economist
"How Cigarettes Tax the Poor", Primeonomics

Question

1. According to the article “Despite Tax, Mexico Soda Sales Pop,” the primary reason the Mexican government decided to tax soda sales was to:

A.
B.
C.
D.

Question

2. Which scenario BEST describes what happened to zero-calorie soda sales as a result of the tax?

A.
B.
C.
D.

Question

3. Which group of people buy the majority of sugary beverages in Mexico?

A.
B.
C.
D.

Question

4. Which scenario BEST describes the potential outcome of a carbon tax described in the article “Why Exxon Mobil Would Support a Carbon Tax”?

A.
B.
C.
D.

Question

5. In the article “How Cigarettes Tax the Poor,” what does the author suggest might contribute to the inelasticity of demand for cigarettes among poor?

A.
B.
C.
D.

Question

6. Who is MOST likely to bear the biggest burden of taxation?

A.
B.
C.
D.