Which of the Following Is Correct Regarding Road Tolls as a Way

question 168

Multiple Choice

Which of the following is correct regarding road tolls as a way to reduce traffic?

• A)They can vary based on the amount of traffic that is present.
• B)They reduce drivers' explicit cost of driving but increase drivers' implicit cost.
• C)Some drivers can be made better off, but some drivers will inevitably made worse off.
• D)They are the solution to the free rider problem that occurs on roads.

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Definitions:

Noncash Assets

Assets owned by a business that cannot be easily converted to cash, such as property, plant, and equipment.

Loss on Realization

A financial loss recognized when liquidating assets yields less value than initially recorded on the books.

Income Ratio

A financial metric comparing some form of an entity's income to another, providing insights into financial stability, profitability, or performance.

Capital Account Balances

The amounts recorded in the equity section of the balance sheet, representing owners' contributions and retained earnings in a business.