Recall the Application about the external cost of young drivers to answer the following question(s).
-Recall the Application.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, which refer to the costs associated with accidents caused by young and inexperienced drivers. By paying a tax for each mile they drive, young drivers would be forced to take into account the negative impact of their driving behavior on others, and would thus be incentivized to drive more safely and responsibly. This would ultimately reduce the number of accidents caused by young drivers and lower the overall external cost associated with their driving behavior.

Recall the Application About the External Cost of Young Drivers