O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2014 · Q61 Mark

The following is a headline from the newspaper. Car drivers to pay higher taxes What will result from an increased tax on cars?

Aincreased employment in the car industry

Bincreased petrol (gas) sales

Creduced external costs of car use

Dreduced number of bus journeys

✓ Correct answer

C: reduced external costs of car use

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2014 Paper 1 Variant 2, question 6.

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