If You Made $25,000 Last Year in Income and Paid

question 38

Multiple Choice

If you made $25,000 last year in income and paid $100 in gasoline tax,what rate of income was your 'gasoline' tax?

• A) 0.004%
• B) 0.4%
• C) 0.025%
• D) 0.25%

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Definitions:

Nonrival

A characteristic of goods where one person's consumption does not reduce the availability of the good for consumption by others.

Nonexcludable

A characteristic of a good or service where it is impossible to prevent individuals from enjoying its benefits once it is provided.

Marginal Social Cost

The additional cost to society as a whole from producing one extra unit of a good or service, including both private costs and externalities.

Rival

A competitor or adversary who is in competition for the same objective or for superiority in the same field.