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In Many Cities, a Congestion Levy Is Applied to Cars

Question 195

Multiple Choice

In many cities, a congestion levy is applied to cars entering or parking in busy areas.Which of the following approaches does this represent?
(i) regulation to reduce the effects of negative externalities from exhaust fumes
(ii) a command-and-control approach to solving the externality problem
(iii) a Pigovian approach to solving the externality problem


A) (i) and (ii) only
B) (i) and (iii) only
C) (iii) only
D) (i) , (ii) and (iii)

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