After the Implementation of the Congestion Tax in London, Traffic

question 91

Multiple Choice

After the implementation of the congestion tax in London, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of

• A) responding to incentives.
• B) the role of pricing in allocating resources.
• C) caveat emptor.
• D) comparative advantage.

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Definitions:

Chemoreceptor

Sensory receptor that is sensitive to chemical stimulation—for example, receptors for taste and smell.

Thermoreceptor

Sensory receptor that detects heat.

Mechanoreceptor

Sensory receptor that responds to mechanical stimuli, such as pressure, sound waves, or gravity.

Photoreceptor

Sensory receptor that responds to light stimuli.