In the two years since the state legalized the sale and use

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members

by BTGmoderatorDC » Sat Sep 29, 2018 4:38 am

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In the two years since the state legalized the sale and use of marijuana, Kerry County has seen a dramatic increase in marijuana use. This has caused an issue both with Kerry County's largely older and more-conservative population and with local businesses that complain of the smell. To significantly reduce the use of marijuana within the county, Kerry County plans to implement a 50% sales tax on the sale of marijuana, believing that the higher cost will serve as a deterrent to many local marijuana users.

Each of the following constitutes a reason to believe that Kerry County's plan will not achieve its goal EXCEPT:

A. Despite the legalization of marijuana, there remains a non-trivial black market for the illegal sale of marijuana in Kerry County.
B. Marijuana use has been most popular among young professionals, a demographic that tends to have a large amount of disposable income.
C. Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco.
D. Kerry County is among the smallest counties in the state, with no location that is more than a 20-minute drive from a neighboring county.
E. The state law that legalized marijuana also allows residents to grow a small amount of marijuana for personal use."‹

OA C

Source: Veritas Prep

Source: Beat The GMAT — Critical Reasoning | Sat Sep 29, 2018 4:38 am

deloitte247: Legendary Member; Posts: 2214; Joined: Fri Mar 02, 2018 2:22 pmFollowed by: 5 members

by deloitte247 » Sat Sep 29, 2018 9:16 am

Option A- INCORRECT.
This option gives a reason why Kerry county will not be able to achieve its goal. Because, despite the legalization of marijuana, the non-trivial black market for the illegal sale of marijuana in Kerry County is still very much available and most people will continue to patronize the black market because its cheaper to get from them.

Option B - INCORRECT.
With the high rate of Marijuana use by most popular young professionals, a demographic that tends to have a large amount of disposable income, even with the higher tax rate on marijuana they will still strive to purchase it because, most are addicted to marijuana.

Option C - CORRECT.
This option has stand as an exceptional attribute to why Kerry county's idea will be possibly effective when implemented. Since Kerry County already levies similar "sin tax" sales taxes on other recreational drugs such as alcohol and tobacco, meaning that, people will now have to choose from these three or other hard drugs. However, the ratio of sales of this drugs will be shared amongst them all compared to when there is legalization and a low cost on Marijuana alone. People who usually patronize marijuana will have to weigh their options well and base it on want and need to actualize patronage on Marijuana, Alcohol and Tobacco since all are on same range of high price and low availability.

Option D - INCORRECT.
This option is also one of the reasons county will not be able to achieve his plan of 50% increase which is meant to reduce the rate of buyers of marijuana. In such a case whereby Kerry County is among the smallest counties in the state with no location that is more than a 20-minute drive from a neighboring county, it will be easy for citizens to go out of the state to neighboring county to buy marijuana at a low cost and still smoke it in Kerry county.

Option E - INCORRECT.
In a situation where the state law that legalized marijuana also allows residents to grow a small amount of marijuana for personal use, one should expect less purchase from the marketers and more of personal "‹ farming to satisfaction.

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