Source: https://ballotpedia.org/California_Proposition_56,_Tobacco_Tax_Increase_(2016)

file:///C:/Users/shyne/Downloads/Biggest%20U.S.%20tax%20hike%20on%20tobacco%20takes%20effect.pdf

1/ According to the article, the federal cigarette tax increases from 39 cents a pack to $1.01.

True

False

2/ "In the past, a 10% price increase reduced cigarette consumption about 4%." According to this statement, the demand for cigarettes is:

unit elastic.

perfectly elastic.

inelastic.

elastic.

3/ According to the article, one in four smokers are poor.

True

False

4/ From the article, what is the Federal tax amount per pack of cigarettes?

$2.

$3.

$1.0066.

$5.

5/ From the article, what is the California tax amount per pack of cigarettes?

$2.

$0.870

$5.

$1.0066.

6/ Proposition 56 increased the tobacco tax by $2.00, bringing the total tobacco tax up to $2.87 per pack of cigarettes

True

False

7/ The State of California claimed the revenue from the additional $2.00 tax was allocated to physician training, prevention and treatment of dental diseases, Medi-Cal, tobacco-use prevention, research into cancer, heart and lung diseases, and other tobacco-related diseases, and school programs focusing on tobacco-use prevention and reduction.

True

False