Recall the application about taxing different groups of drivers a different tax rate based on ages.The goal of taxing drivers for each mile they drive is to:
A)keep insurance rates high.
B)generate tax revenue to repair roads.
C)internalize the external costs from collisions.
D)get elderly drivers off the highways.

Question

Quizplus · Accepted Answer

The goal of taxing drivers for each mile they drive is to internalize the external costs from collisions, meaning that drivers pay for the potential risks and damages they may cause, thereby encouraging safer driving and reducing accidents.

Recall the Application About Taxing Different Groups of Drivers a Different