What is using a toll to reduce traffic when congestion is greatest an example of
A)a regulation solution
B)a command-and-control policy
C)a corrective tax
D)a Coase theorem solution

Question

Quizplus · Accepted Answer

Using a toll to reduce traffic when congestion is greatest is an example of a corrective tax. This is because it seeks to correct the negative externality of traffic congestion by imposing a cost (tax) on those who contribute to the problem. This approach is also known as congestion pricing.

What Is Using a Toll to Reduce Traffic When Congestion