If Revenue from a Gasoline Tax Is Used to Build

question 188

Multiple Choice

If revenue from a gasoline tax is used to build and maintain public roads, the gasoline tax may be justified on the basis of

• A)the benefits principle.
• B)the ability-to-pay principle.
• C)vertical equity.
• D)horizontal equity.

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Definitions:

Probability

The likelihood or chance of an event occurring, often expressed as a number between 0 and 1.

Vehicles

Modes of transportation that are used to move people or goods from one location to another.

Exponential Distribution

A probability distribution used to model the time between events in a process that occurs continuously and independently at a constant average rate.

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.