Which of These Statements About Use Fees for a Highway

question 67

Multiple Choice

Which of these statements about use fees for a highway is best?

• A)A flat rate results in lower use by most individuals.
• B)A flat rate results in higher use by most individuals.
• C)A flat rate has no impact on use by most individuals.
• D)A fee based on congestion results in higher use by most individuals.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.

Premium

The amount paid for an insurance policy or the difference above the nominal or face value of a security.

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.