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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