Why Does a Tax on Gasoline Often Reduce Road Congestion

question 161

Multiple Choice

Why does a tax on gasoline often reduce road congestion

• A)Gasoline and driving are complementary goods.
• B)Gasoline and driving are substitute goods.
• C)Gasoline and driving are normal goods.
• D)Gasoline is considered an inferior good.

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Definitions:

Sustainable Value Chain

A value chain approach focusing on long term resilience and environmental sustainability, aiming to minimize negative impacts.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the remains of living organisms and serving as a major global energy source.

Resource Constraints

Limitations on the availability of resources such as time, money, and labor that can affect the completion of projects or the achievement of goals.

Rapid Deforestation

The fast-paced clearing or thinning of forests by humans, often for agriculture, logging, or urban development, leading to significant ecological and environmental impacts.