Publication: Growing Up Tobacco Free (1994)

In 1951, the U.S. federal government raised the tax on a pack of cigarettes from 7 cents to 8 cents. The stated public reason for this increase was to help finance the Korean War. Based only on this information, what was the principal function of this specific tax adjustment?

Evaluating the Purpose of Historical Tobacco Taxes

In 1951, the U.S. federal tax on a pack of cigarettes was raised from 7 to 8 cents. The stated purpose of this increase was to help fund the Korean War. Considering this specific historical context, what was the primary economic function of this tax adjustment?

The primary motivation for the 1951 increase in the U.S. federal excise tax on cigarettes from 7 to 8 cents was to discourage smoking due to emerging public health concerns.

Evaluating a Historical Economic Argument

Analyzing the Function of a Historical Tax

Evaluating a Historical Claim About Taxation

In 1951, the U.S. federal tax on cigarettes was increased from 7 to 8 cents per pack, with the stated purpose of helping to fund the Korean War. Given this explicit goal, what was the most likely governmental expectation regarding consumer behavior?

In 1951, the U.S. government increased the federal tax on a pack of cigarettes from 7 to 8 cents. The publicly stated goal of this tax increase was to help raise revenue for the Korean War. For this policy to be effective in achieving its revenue-raising goal, which of the following assumptions about consumer behavior must have been made?

Critiquing an Economic Argument