When Deciding to Implement a Congestion Tax, Economists and the Government

question 29

Multiple Choice

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

• A) if the tax would be allocated equitably.
• B) what tax amount should be charged.
• C) who should be exempt from the tax.
• D) how much revenue will the tax generate.

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Definitions:

Government Service

A sector that encompasses various activities, services, and operations conducted by the government to serve the public and implement policies.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

Budgets

Financial plans detailing projected income and expenses over a specific period.

Public-sector Managers

Individuals responsible for directing, controlling, and overseeing entities in the government segment that provide public services.