Which of the Following Statements Is True of the Tax

question 144

Multiple Choice

Which of the following statements is true of the tax on gasoline?

• A)The cost of collecting a gasoline tax outweighs the revenues raised by the tax.
• B)It is preferred to tolls as the best solution to road congestion.
• C)It discourages driving on noncongested roads, even though there is no congestion externality for these roads.
• D)Both b and c are correct.

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Definitions:

Excessive

Amounts or actions that go beyond what is normal, necessary, or reasonable, often leading to negative outcomes.

Important Things

Generally refers to items or aspects that hold significant value or priority in a given context.

Specific Phobias

Intense, irrational fears of specific objects or situations, significantly impacting one's ability to function.

Acrophobia

Fear of high places.