Use the Information Below to Answer the Following Question

question 71

Multiple Choice

Use the information below to answer the following question.
Fact 16.2.1 Global Solutions for Local Gridlock
Gridlock costs Toronto $6 billion a year, with average commutes of 80 minutes. By 2013, an additional 27 minutes will be added to the daily grind. Civic leaders are looking at road tolls, a regional gas tax, and parking levies.
Source: Toronto Star, June 24, 2011

Figure 16.2.1
-Refer to Figure 16.2.1. Toll roads, a regional gas tax, and parking levies ________ make Toronto streets less congested because ________.

• A)will not; drivers will switch to using public transport only if TTC prices fall
• B)will not; additional charges on Toronto's motorists will not change driving habits
• C)will; motorists will consider the external benefit from driving in Toronto
• D)will; motorists will consider the external cost of driving in Toronto
• E)will not; construction on Toronto's streets always results in congestion

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Definitions:

Corporate Income Statement

is a financial document that outlines a corporation’s revenues, expenses, and profits or losses over a specific period.

Income From Continuing Operations

The earnings generated from a company's ongoing core business operations, excluding extraordinary items.

Cumulative Effect

The aggregate impact of an accounting change or policy adjustment over the period before the adjustment is implemented, often recognized immediately in financial statements.

Income Tax Expense

The amount of money that companies or individuals owe the government based on their earnings.