When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to determine
A)if the tax would be allocated equitably.
B)what tax amount should be charged.
C)who should be exempt from the tax.
D)how much revenue will the tax generate.

Question

Quizplus · Accepted Answer

Economists would use the economic way of thinking to determine the optimal tax amount that balances reducing congestion with minimizing negative impacts on economic activity.

When Deciding to Implement a Congestion Tax, Economists and the Government