Years ago, consumers in Frieland began paying an energy tax in the form of two Frieland pennies for each unit of energy consumed that came from nonrenewable sources. Following the introduction of this energy tax, there was a steady reduction in the total yearly consumption of energy from nonrenewable sources.
If the statements in the passage are true, then which of the following must on the basis of them be true?
If the statements in the passage are true, then which of the following must on the basis of them be true?
Show Hint
- There was a steady decline in the yearly revenues generated by the energy tax in Frieland.
- There was a steady decline in the total amount of energy consumed each year in Frieland.
- There was a steady increase in the use of renewable energy sources in Frieland
- The revenues generated by the energy tax were used to promote the use of energy from renewable sources.
- The use of renewable energy sources in Frieland greatly increased relative to the use of nonrenewable energy sources.
The Correct Option is A
Solution and Explanation
This is a "must be true" question, which means we need to find a conclusion that is a logically necessary consequence of the given premises. We are given two key facts: a tax was introduced, and the consumption of the taxed item steadily decreased.
Step 2: Detailed Explanation:
Let's analyze the premises:
- Premise 1: An energy tax of 2 pennies was applied to each unit of nonrenewable energy.
- Premise 2: After the tax, the consumption of nonrenewable energy showed a "steady reduction".
Let's consider the yearly revenue from the tax. Revenue is calculated as:
\[ \text{Revenue} = (\text{Tax per unit}) \times (\text{Number of units consumed}) \] In this case, the tax per unit is a constant (2 pennies). The number of units consumed is steadily decreasing. Therefore, the revenue, which is a constant multiplied by a steadily decreasing number, must also be steadily decreasing.
Now let's evaluate the options:
- (A) This matches our deduction perfectly. Since consumption decreased steadily and the tax rate was constant, the revenue must have declined steadily.
- (B) This is not necessarily true. The passage only mentions a decline in the consumption of nonrenewable energy. It's possible that the consumption of renewable energy increased, and the total energy consumption could have stayed the same, increased, or decreased. We don't have enough information.
- (C) This is possible, but not guaranteed. Consumers could have reduced their total energy usage instead of switching to renewables. The passage doesn't provide information on renewable energy use.
- (D) The passage does not state how the tax revenues were used. This is outside the scope of the information given.
- (E) Similar to (C), this is a possible outcome but not a necessary one. We cannot be certain that the use of renewables increased at all, let alone "greatly increased."
Step 3: Final Answer:
The only conclusion that must be true based on the provided statements is that the yearly tax revenues steadily declined.
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