The Idea of Requiring Motorists to Pay to Use the Busiest

question 35

Multiple Choice

The idea of requiring motorists to pay to use the busiest streets in a city

• A)has been proposed by many public officials, but to date the idea never has been tried in a major city anywhere in the world.
• B)was tried in New York City in the 1990s, but the result was more - not less - congestion on busy streets, and the experiment was short-lived.
• C)reflects the fact that a congested road is a public good.
• D)reflects the fact that a congested road is a common resource.

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Definitions:

Original Investment

The initial amount of money or capital put into an investment vehicle or project.

PV Of CCA Tax Shield

The present value of the tax savings a company realizes from being able to deduct the Capital Cost Allowance on its tax return.

PV Of After-Tax Lease Payments

This represents the present value of lease payments made over the lease term, adjusted for tax implications.

Original Investment

The initial amount of money put into an investment or project.