Which of the Following Is a Negative Externality Connected to Automobile

question 131

Multiple Choice

Which of the following is a negative externality connected to automobile transportation?

• A) Driving faster than the 65 mph speed limit is not allowed, even though individuals are able to do it, and many want to.
• B) In an accident, a person who chooses not to wear a seatbelt becomes an object moving around the inside of the car, possibly hitting other, belted-in, passengers with lethal force.
• C) Gasoline is taxed on a per-gallon basis.
• D) Gasoline is imported, and thus increases the trade deficit.
• E) While stuck in traffic, you have a chance to listen to your favorite CD, which you haven't had the time to do in other places.

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Definitions:

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a range of prices.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of goods sold changes.

Marginal Revenue

The extra revenue received from the sale of an additional unit of a product or service.