When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?
A) thinking at the margin
B) isolating variables
C) making assumptions
D) all of the above

Question

Quizplus · Accepted Answer

Economists would use all of the above elements of the economic way of thinking when determining an appropriate congestion tax. Thinking at the margin would involve considering the additional cost or benefit of each unit of the tax. Isolating variables would involve examining the impact of the tax in isolation from other factors. Making assumptions would involve establishing a simplified model of the market to analyze the effects of the tax.

When Determining an Appropriate Congestion Tax, Economists Would Use Which