Which of the following problems can not be alleviated by a gasoline tax?
A)traffic congestion
B)traffic accidents
C)the undersupply of goods that produce positive externalities
D)air pollution

Question

Quizplus · Accepted Answer

A gasoline tax would not directly address the undersupply of goods that produce positive externalities, as such goods are underproduced due to market failures such as information asymmetry and lack of appropriate incentives, rather than a lack of gasoline consumption.

Which of the Following Problems Can Not Be Alleviated by a Gasoline