alcoholic beverages in Prohibitionland

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alcoholic beverages in Prohibitionland

by SmarpanGamt » Wed Dec 01, 2010 9:55 am
The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors' economic stance against the ban?

In the provinces that restricted alcoholic beverages, there was a short-term negative impact on restaurant visitation in the beginning of last year.
The sales tax in Prohibitionland is lower on food and beverages than it is on other consumer goods, such as clothing.
The consumption of alcoholic beverages in Prohibitionland has been on a gradual decline the last 20 years.
The restrictions on alcoholic beverages enacted last year allowed for the service of drinks beginning around dinnertime each evening.
Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.

Please discuss.

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by sanabk » Wed Dec 01, 2010 1:49 pm

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by SmarpanGamt » Sat Dec 04, 2010 9:19 pm
Please explain. Thanks. OA Later

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by M09 » Sun Dec 05, 2010 1:04 am
SmarpanGamt wrote:The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors' economic stance against the ban?

In the provinces that restricted alcoholic beverages, there was a short-term negative impact on restaurant visitation in the beginning of last year.
The sales tax in Prohibitionland is lower on food and beverages than it is on other consumer goods, such as clothing.
The consumption of alcoholic beverages in Prohibitionland has been on a gradual decline the last 20 years.
The restrictions on alcoholic beverages enacted last year allowed for the service of drinks beginning around dinnertime each evening.
Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.

Please discuss.
Is it A ??

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by SmarpanGamt » Sun Dec 12, 2010 3:28 am
explaination please.

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by fitzgerald23 » Sun Dec 12, 2010 9:51 am
1. Provinces that restricted alcohol saw sales tax revenue raise 50%
2. Provinces with no restrictions saw tax revenue only raise 30%
3. A ban on alcohol will thus not effect revenues

A. Incorrect. Visitation falling does not necessarily mean lack of spending. In fact if there was a short term affect and revenues still rose it means the remaining people are likely spending more money

B. Incorrect. A comparison on food and clothing has nothing to do with the argument at hand.

C. Incorrect. Whether or not it is already declining has no effect on the argument

D. Correct. This states that there is a difference in the enacted laws and the proposed laws. This evidence states that the restrictions were not a full ban, but in fact allowed alcohol sales after dinnertime. There is no evidence that supports the fact that a full ban will increase revenue.

E. Incorrect. Overall sales tax revenue for all busineeses has no bearing on the argument positive or negative

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by arora007 » Mon Dec 13, 2010 4:59 am
D should be the obvious choice. D explains the paradox why there was a 50% increase in sales tax when there were restrictions on serving alcohol.
Its because people frequented more often at dinner time to have alcohol and as a result many of them did have dinner as well and the overall sales rose.

OA please.
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by pradeepkaushal9518 » Wed Dec 15, 2010 9:15 pm
drinks are allowed before dinner hence more people gathered during evening time to consume drink before dinner

hence D
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