Question

Concerns about the environment prompt Congress to pass a $1 surcharge tax on each gallon of gasoline. Which statement

Answer 1

Answer:

D.) Production and shipping costs would increase, thus increasing the cost of consumer goods and services. These higher costs could likely lead to  slowing economic growth.

Explanation:

While surcharge tax on gasoline can indeed lead to slowing down the economic growth, its long-term effect on the country’s shift from the gasoline to more clean sources bring of energy would overweight the negative consequences of the former with its benefits.

For example, similar policies in the Nordic countries led to complete shift away from leaded gasoline.