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:

Duodenum

The first section of the small intestine immediately following the stomach, playing a crucial role in digestion.

Villi

Finger-like projections on the wall of the small intestine that increase surface area for absorption of nutrients.

Mucosa

The moist tissue layer lining some organs and body cavities, including the nose, mouth, lungs, and digestive tract.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine that digests and absorbs nutrients from food.