The Following Data Show the Relationship Between the Number of Drivers

question 15

Multiple Choice

The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times.
-Refer to the data above.Imposing a toll of $5 if one leaves between 8:00 a.m.and 9:00 a.m.__________ because __________.

• A) reduces total economic surplus;citizens are paying for the highway more than once
• B) improves total economic surplus;the government now has more tax revenue
• C) reduces total economic surplus;drivers do not change their behaviour and pay $5
• D) improves total economic surplus;the highway is no longer treated as having a price of zero
• E) reduces total economic surplus;the government now has more tax revenue

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Definitions:

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, typically within a specific period.

Operating Activities

Activities that relate to the primary operations of a company, such as selling products or providing services, as opposed to financing or investing activities.

Investing Activities

Financial transactions involving the purchase or sale of long-term assets and investments.

Net Cash

The amount of cash and cash equivalents minus any liabilities or financial obligations.