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A Congestion Toll Imposed on a Highway Driver to Force

question 160

True/False

A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality.


Definitions:

Liability

Legal responsibility for one's actions or omissions, potentially leading to civil duty or financial compensation.

Tort

A civil wrong, other than breach of contract, that causes harm or loss, resulting in legal liability for the person who commits the tortious act.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Point-Of-Sale Disclosure

Information provided to consumers at the time of sale, detailing important facts and conditions about the product or service being purchased.

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