Which of the Following Is Correct Regarding Road Tolls as a Way

question 168

Multiple Choice

Which of the following is correct regarding road tolls as a way to reduce traffic?

• A)They can vary based on the amount of traffic that is present.
• B)They reduce drivers' explicit cost of driving but increase drivers' implicit cost.
• C)Some drivers can be made better off, but some drivers will inevitably made worse off.
• D)They are the solution to the free rider problem that occurs on roads.

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Definitions:

Bond Prices

The market price at which a bond is currently trading, influenced by interest rates, the bond's credit rating, and other market factors.

Market Value

The market's current rate for transactions involving an asset or service.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, where the issuer owes the holders a debt and is obliged to pay interest and/or to repay the principal at a later date, termed maturity.

Maturity

The date on which a financial obligation or investment becomes due for payment or is to be repaid in full.