Cars Arrive Randomly at a Tollbooth at a Rate of 20

question 98

Multiple Choice

Cars arrive randomly at a tollbooth at a rate of 20 cars per 10 minutes during rush hour. What is the probability that exactly five cars will arrive over a five-minute interval during rush hour?

• A) 0.0378
• B) 0.0500
• C) 0.1251
• D) 0.5000

---

Definitions:

Corrective Tax

A tax designed to internalize externalities, effectively correcting market outcomes that might otherwise result in social inefficiency.

Command-And-Control Policies

Regulatory strategies where the government sets specific limits and controls on emissions or discharges, often requiring technology or methods to be used.

Corrective Taxes

Taxes imposed to correct the market outcomes by accounting for externalities and bringing the social costs and benefits into balance.

Economic Efficiency

An economic state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.