What Effect Would a Tax on Petrol Have

question 78

Multiple Choice

What effect would a tax on petrol have?

• A)It would have no effect on driving behaviour
• B)It would discourage people from driving on congested roads only
• C)It would discourage people form driving on uncongested roads only
• D)It would discourage people from driving on congested and uncongested roads

Understand the differences and responsibilities between staff and line management in organizations.

Grasp the concept of value creation beyond shareholder value to include broader business impacts.

Recognize the role of budgets in managing organizational resources and their relationship with the financial accounting function.

Acknowledge how the evolving information needs of organizations influence changes in management accounting practices.

---

Definitions:

Economic Loss

A situation where total costs exceed total revenues, indicating that a firm is not covering its opportunity costs.

Accounting Profit

The calculated income of a business or company after subtracting all explicit costs from total revenues.

Average Variable Cost

Calculated by dividing the total variable costs by the quantity of output produced, representing the variable cost per unit of output.

MR = MC

The condition where marginal revenue equals marginal cost, often used to determine the profit-maximizing output level for a firm.