The federal government relies most heavily on which source of revenue?
a. individual income taxes
b. corporate income taxes
c. social insurance payroll taxes
d. excise taxes
Question 2
A public highway looks like a collective consumption good because there is very little traffic on it and zero congestion. Hence the marginal cost of an additional car is zero.
Which of the following statements best describes why we should not assume that the road would always be a collective consumption good? a. The lack of congestion could be the result of government overproduction. b. The lack of congestion could be because of its low speed limit. c. The lack of congestion could be because of excessive police ticketing.
d. The lack of congestion is because of the lower cost of alternative means of travel.
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