If Revenue from a Gasoline Tax Is Used to Build

question 188

Multiple Choice

If revenue from a gasoline tax is used to build and maintain public roads, the gasoline tax may be justified on the basis of

• A)the benefits principle.
• B)the ability-to-pay principle.
• C)vertical equity.
• D)horizontal equity.

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Definitions:

Profitable Self-dealings

Transactions made within an organization that are beneficial to the parties involved, often at the expense of shareholders or ethics.

After-tax Cost

The net cost of an investment or loan after accounting for the effects of taxes on the total expense.

NPV

Net Present Value; a calculation used to determine the worth of a project or investment by discounting future cash flows to the present.

Refunding Decision

The process of replacing an existing debt with a new one, typically with better terms, in order to reduce financing costs.