FREE Trial

A VMT tax of 4.4 cents per mile would internalize the external cost from collisions on average, but the external cost varies with the age of the driver. As shown in Table, the external cost of young drivers is over

A VMT tax of 4.4 cents per mile would internalize the external cost from collisions on average, but the external cost varies with the age of the driver. As shown in Table, the external cost of young drivers is over three times the external cost of middle-aged drivers. A precise VMT tax would have higher tax rates for the drivers with higher external cost. For example, the tax for young drivers would be 11 cents per mile, compared to 3.4 cents per mile for a middle-aged driver. Such a tax would reduce the miles driven by all drivers, but the reductions would be larger for young drivers, the group with the highest collision rates and externalcosts.
A VMT tax of 4.4 cents per mile would internalize
Transcribed Image Text:

THE EXTERNAL ACCIDENT COSTS FOR DIFFERENT VEHICLES AND DRIVER AGES Younger Than Age 25 Between the Ages of 25 and 70 Over Age 70 Cents per mile 3.4 5.4

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

The external cost of young drivers under 25 is 11 cents per mile more than thr…View the full answer


answer-question
Related Book For  answer-question
Macroeconomics Principles Applications And Tools

Macroeconomics Principles Applications And Tools

ISBN: 9780134089034

7th Edition

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

See More Books
Posted Date: December 04, 2012 00:53:56
See More Questions

Students also viewed these Economics questions

Q:
As shown in Table 24.1, water has a very large dielectric constant K = 80.4. Why do you think water is not commonly used as a dielectric in capacitors? Table 24.1 Values of Dielectric Constant Kat...
A:
Water is an excellent solvent and......
Q:
As shown in Table 16.2, $1,000 invested at 10 percent compound interest will grow into $1,331 after three years. What is the present value of $2,662 in three years if it is discounted back to the...
A:
Answer 2000 The correct answer to this question is 2 000 bec......
Q:
As shown in Table 15.2, Kp for the equilibrium is 4.51 Ã 10-5 at 450 oC. For each of the mixtures listed here, indicate whether the mixture is at equilibrium at 450 oC. If it is not at...
A:
Calculate the reaction quotient in each case compare with a Since Q Kp the reaction will shit......
Q:
10 1 Journalize the following transactions for Bigelow Company for the month of October. 31 Oct Stockholders invest cash in the company in exchange for common stock. 5 Oct The company buys a delivery...
A:
Date Particular Dr Cr Oct 1 Dr Cash Account Cr Investment Account 40 000 40 000 Investment in ex......
Q:
During a thunderstorm, you can easily estimate your distance from a lightning strike. Count the number of seconds that elapse from when you see the flash of lightning to when you hear the thunder....
A:
Strategy Use x v x t and the speeds of light......
Q:
Sinjay Corporation incurred the following costs while manufacturing its product: Materials used in product $120,000 Advertising expense $45,000 Depreciation on factory 60,000 Property taxes on...
A:
To calculate the cost of goods manufactured and the cost of goods sold we need to consider various c......
Q:
If either parents get involved in their childrens education or the school year is lengthened, then if the children learn phonics, their reading will improve and if they are introduced to abstract...
A:
Click to View...
Q:
Grand Fender is a competitor of Pro Fender from Exercise E23-19. Grand Fender also uses a standard cost system and provides the following information: Static budget variable overhead.........$ 5,630...
A:
Requirement 1 Standard VOH allocation rate Budgeted VOH Budgeted allocation base 5 630 563 DLHr 10 p......
Q:
A company is planning to start an investment, which will cost an initial investment of $215 million. Management has already forecast all future cash flows for this project: $55 million each year in...
A:
SOLUTION To calculate the Internal Rate of Return IRR for the investment we need to find the discoun......
Q:
Ms. Hannah Morse is a councilor for the growing town of Evergreen. She has approached you, as a friend and a public accountant, with her concerns over the draft financial statements of Evergreen for...
A:
Discussion An incentive now exists the new bonus structure for the town controller to maximize reported revenues to maximize his bonus Government gran......
Q:
Recent studies have reported dangerously high levels of mercury in tuna served in sushi restaurants. In one study, one-third of the samples had more than one part of mercury per million, the level...
A:
Mercury levels in tuna have risen This Application illustrates how societ......
Q:
1. The optimal level of pollution abatement is the level at which the _________ of abatement equals the _________ of abatement. 2. The marginal cost of abatement typically _________...
A:
1 Marginal cost marginal benefit 2 Increases 3 Increases increasing rate 69 4 The horizon......
Q:
1. How can text mining be used to ease the task of literature review? 2. What are the common outcomes of a text mining project on a specific collection of journal articles? Can you think of other...
A:
1 Text mining enables a semi automated analysis of large volumes of published literature Clustering......
Q:
BlendWell Inc., a firm manufacturing blenders, has fixed costs of $250,000, variable costs of $45 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a blender...
A:
I apologize for the confusion in my previous responses The corr......
Q:
A square footing that will carrying a total load of 850 kN is to be constructed on a uniform dense clean gravel. The gravel has a dry unit weight of 21.4 kN/m, and its angle of internal friction is...
A:
To determine the minimum realistic dimensions of the proposed footing consider the bearing capacity......
Q:
Greener Pastures Corporation borrowed $1,500,000 on November 1, 2015. The note carried an interest rate of 12 percent with principal and interest due June 1, 2016. (a) The note issued on November 1....
A:
javascriptCopy code Date Account Debit Credit Nov 1 2015 Cash 1 500......
Q:
Sid Alvarez, another accounting student in our class, makes the statement "Retained earnings is like a bank account that you can withdraw from." 1. Agree with Sid's Statement or not? 2. Why agreed or...
A:
I understand Sid s analogy but I would slightly disagree w......
Q:
Dietz owned a delivery van with a book value of $2,000 (old van). It traded this old van in on a new one which cost $16,000 (Price=cost of the new van). The dealer allowed Dietz a trade-in allowance...
A:
To compute the amount of cash Dietz must pay t......
Q:
What is the 100 percent rule for simultaneous changes in right-hand sides?
A:
The 100 percent rule basically says that we......
Q:
Let (X. A. p) be a measure space. Show that for any A,B A, we have the equality: (AUB)+(An B) = (A) + (B).
A:
The detailed......
Q:
While crime rates fell across the country over the past few decades, they fell especially rapidly in Manhattan. At the same time, there were some neighborhoods in the New York metropolitan area in...
A:
As people move to Manhattan due to its lower crime rate......
Q:
An analyst observes the following equilibrium price quantity combinations in the market for restaurant meals in a city over a four-year period: She concludes that the market defies the law of demand....
A:
The key here is to realize that the analyst is observing different equilibrium point......
Q:
The market for rice has the following supply and demand schedules: To support rice producers, the government imposes a price floor of $50 per ton. a. What quantity will be traded in the market? Why?...
A:
a Price floor means fixing a price below which the good cannot be sold This is usually a type of p......
Q:
On August 7, 2015, Mainsail Co. purchased $2,190 of supplies on account. In Mainsail Co.s chart of accounts, the supplies account is No. 1050, and the accounts payable account is No. 2010. a....
A:
a b c d Date 2015 Aug 7 Suppli......
Q:
On August 7, 2010, Mainsail Co. purchased $2,190 of supplies on account. a. Journalize the August 7, 2010 transaction. b. Prepare a T account for Supplies. Enter a debit balance of $1,050 as of...
A:
a 2010 Aug 7 Supplies 2 190 Accounts Payable 2 190 b Prepare a T account for Supp......
Q:
Wholefoods, an American supermarket chain, introduced its own private label, 365 brand in 1997 (24 years ago). Wholefoods registered 365 trademark in 1997 for $1,000. Since then, Wholefoods has paid...
A:
The carrying amount of the 365 trademarked brand on Wholefoods 2021 balance sheet base......
Q:
The conjugate base of diethyl malonate can serve as a nucleophile to attack a wide range of electrophiles. Identify the product that is formed when the conjugate base of diethyl malonate reacts with...
A:
a b c......
Q:
The 2014 balance sheet of Jordan's Golf Shop, Inc., showed long-term debt of $1.625 million, and the 2015 balance sheet showed long-term debt of $1.73 million. The 2015 income statement showed an...
A:
Cash flow to creditors Interest paid Net new......
Q:
1. What are the strengths and weaknesses of the Campbell Soup Company's marketing information system? 2. What objectives does Campbell have for the marketing research efforts described in this case?...
A:
1 Based on the information provided in this case it is difficult to find weaknesses in Campbells marketing research program But a true marketing infor......
Q:
1. How should Opportunistic proceed with developing this proposal? 2. What should he include in the proposal? What will be the differences for the lock manufacturing businesses and the insurance...
A:
1 He should develop the proposal by following the steps of product design He has alr......
Q:
Download the following Excel spreadsheet from the textbook website: www.Findafraud.xls. These data include sales transactions and credits for a retail store. You are concerned that the store is...
A:
1 Potential red flags are After hours sales sales during vacation periods lar......
Q:
Use the following data to determine the total amount of working capital. Reyes Draperies and Blinds Corporation Balance Sheet December 31, 2022 Cash Accounts receivable Inventory Prepaid insurance...
A:
Working capital is calculated by subtracting current liabilities from......
Q:
Prepare the 2021 statement of cash flows for Smolira Golf Corp. Some recent financial statements for Smolira Golf Corp. follow. Use this information to work this problem. SMOLIRA GOLF CORP. 2020 and...
A:
Statement of Cash Flows For 2021 Cash beginning of the year 32 653 Operating Activities Ne......
Q:
Derby Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Terri Burell, Capital; Terri Burell, Drawing; Fees Earned; Rent Expense;...
A:
Date Mar 1 Mar 2 Account Title Advertising Expense Supplies Mar 6 Office Equip Mar 5 Rent Expe......
Q:
The following selected transactions were completed during February of the current year: 1. Billed customers for fees earned, $41,730. 2. Purchased supplies on account, $1,800. 3. Received cash from...
A:
a b T accounts Cash balance has a debit of 38 050 Supplies has a debit balance of 1......
Q:
Quible Industries comprises four divisions, each operating in a different industry. The divisions are currently preparing their capital expenditure budgets for the coming year. The Caledonia...
A:
1 a The payback method measures the number of years required for the after tax cash inflows to fully recover the initial cash investment in a project The payback method emphasizes an organizations fin......
Q:
No e-mail messages are eloquent creations. Some love letters are eloquent creations. Therefore, some love letters are not e-mail messages. Determine whether the following arguments are best...
A:
The argument No e mail messages are eloquent creations Some love letters are eloquent creations Ther......
Q:
Dundas Limited purchased a machine under a hire purchase agreement on 1 January 2015. The agreement provided for an immediate payment of 2,000, followed by five equal instalments of 3,056, each...
A:
a Machine Hire Purchase Loan Account Date Particulars Debit Credit Balance 01 01 2015 To Cash Initial Payment 2 000 2 000 30 06 2015 To Interest 1st i......
Q:
On 1 January 2016, Carver bought a machine costing 20,000 on hire purchase. He paid a deposit of 6,000 on 1 January 2016 and he also agreed to pay two annual instalments of 5,828 on 31 December in...
A:
a Accounts for Each Year Year 2016 i Machine Account January 1 2016 Machine Cost Balance Sheet 20 000 December 31 2016 Depreciation Expense Income Sta......
Q:
Amoco, Exxon, and Texaco are all listed on the New York Stock Exchange. It must be the case that all major American oil companies are listed on the New York Stock Exchange. Determine whether the...
A:
The argument Amoco Exxon and Texaco are all listed on the New York Stock Exchange It must be the cas......
Q:
The longer a pendulum is, the longer it takes to swing. Therefore, when the pendulum of a clock is lengthened, the clock slows down. Determine whether the following arguments are best interpreted as...
A:
The argument The longer a pendulum is the longer it takes to swing Therefore when the pendulum of a......
Q:
If b A = MN, b C = M, and b D = N, what is the relationship among A, C, and D?
A:
bA MN......
Q:
Decades after the event, Johnson & Johnson (J&J), the 130-year-old American multinational, is still praised for swiftly The company indicated that its response was based on the expectations set forth...
A:
1 From the viewpoint of its Credo J J did not meet the needs of doctors nurses and patients to mothers and fathers and all others who use our products From the viewpoint of customers J Js actionsor in......
Q:
A 0.1276-g sample of an unknown monoprotic acid was dissolved in 25.0 mL of water and titrated with 0.0633 M NaOH solution. The volume of base required to bring the solution to the equivalence point...
A:
a Since the acid is monoprotic the moles of acid equals......
Q:
A strong monoprotic acid, with the molecular structure, is dissolved in a beaker of water. Which of the following pictures best represents the acid solution (water molecules have been omitted for...
A:
A strong monoprotic acid will dissolve completely in water to form hydronium ions H 3......
Q:
A 3.664-g sample of a monoprotic acid was dissolved in water. It took 20.27 mL of a 0.1578 M NaOH solution to neutralize the acid. Calculate the molar mass of the acid.
A:
The neutralization reaction is The mole rat......
Q:
In Exercises 7192, find and simplify the difference quotient f(x +h)-f(x) h -, h = 0
A:
0 0......
Q:
Portman Industries just paid a dividend of $2.16 per share. Portman expects dividends to grow by 12% over the next year. The next year, the dividend is expected to grow at a constant rate of 2.4% per...
A:
1 54 33 Computation of the Horizon Value Cost of equity R f R f R......
Q:
A circular post, a rectangular post, and a post of cruciform cross section are each compressed by loads that produce a resultant force P acting at the edge of the cross section (see figure). The...
A:
a EQUAL MAXIMUM TENSILE STRESSES CIRCULAR POST Tension COMPRESSION RECTANGULAR POST TENSI......
Q:
Use the first four rules of inference to derive the conclusions of the following symbolized arguments.
A:
Click to View...
Q:
Gross Profit Method Castlevania Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following....
A:
Beginning inventory Purchases Purchase returns Goods available at cost Sales Sales......
Q:
Reflect on the industry and statutory frameworks for the USB Wealth Management Crisis, and develop an overview of the company's legal and ethical environment. Specifically: Analyze how the case fits...
A:
Broader Business Ethics Context 1 Profit vs Ethics Tensions Many business ethics cases involve tensions between profit seeking and ethical behavior Co......
Q:
Bart Campbell, CFA, is a portfolio manager who has recently met with a prospective client, Jane Black. After conducting a survey market line (SML) performance analysis using the Dow Jones Industrial...
A:
The effect of an incorrectly specified market proxy is that the beta of Black s portfolio is likely......
Q:
HA and HB are both weak acids although HB is the stronger of the two. Will it take a larger volume of a 0.10 M NaOH solution to neutralize 50.0 mL of 0.10 M HB than would be needed to neutralize 50.0...
A:
The reaction of a weak acid with a strong base is driven to completion by the formation of w......
Q:
Use the data in Table 15.3 to calculate the equilibrium constant for the following reaction: HCOOH(aq) + OH-(aq) HCOO-(aq) + H2O(l)
A:
HCOOH HCOO H H OH HO K......
Q:
Aggressive versus Conservative seasonal funding strategy Dynabase Tool has forecast its total funds requirement for the coming year as shown in the following table. a. Divide the firm's monthly funds...
A:
a Month Total Funds Requirements Permanent Requirements Seasonal Requirements January 2 000 000 2 00......
Q:
Paula sells cars on the weekend while she is attending college. In addition to her hourly wage of $5.50, she earns a 2% commission on her total sales. Paula worked 10 hours and sold 3 cars at $15,000...
A:
To calculate Paula s earnings we need to consider her hourly wage and commission from car sales......
Q:
Santos Company had the following transactions for the month of August 1. Aug. 8, 2020 2. Aug. 5, 2020 3. Aug. 8, 2020 Made an additional investment of P10,000 cash. Borrowed P50,000 from a bank....
A:
Let s summarize the transactions for Santos Company in the month of August 1 August 8 2020 Made an a......
Q:
DVS is a national chain of drug stores. The following are excerpted from DVS' 2021 financial statements (in millions). DVS has a June 30 year end. Assets Cash & cash equivalents Accounts receivable,...
A:
To calculate the reported gross profit margin for the year ending Jun......
Q:
Today, a company paid a dividend in the amount of $2.15 per share. For the next 2 years, the company is expected to increase its dividend by 15% each year. The company is then expected to have a...
A:
To calculate the stock s expected price per share 2 years from now we can use the Gordon Growth Mode......
Q:
You are selling Fruit Baskets and fresh vegetables on the roadside for a local farmer. He will pay you $2.00 for each Fruit basket sold and 15% of the total sales for the day. What is your pay if you...
A:
To calculate your pay you need to consider both the fixed payment per Fruit basket sold......
Q:
How does false-positive blocking affect relationship management efforts?
A:
One complication with e mail communications is that most people have multiple e......
Q:
A company pledges their receivables so they may Multiple Choice Charge a factoring fee. Increase sales. Recognize a sale. Collect a pledge fee. Borrow money. Failure by a promissory notes' maker to...
A:
The detailed answer for the above question is provided below 1 Increase sales Increase the number of......
Parallel Computers 2 1st Edition - ISBN: 0367456044 - Free Book