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The most plausible justification for higher taxes on automob

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The most plausible justification for higher taxes on automob [#permalink] New post 01 Feb 2017, 02:50
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Question Stats:

60% (01:15) correct 40% (01:07) wrong based on 5 sessions


The most plausible justification for higher taxes on automobile fuel is that fuel consumption harms the environment and thus adds to the costs of traffic congestion. But the fact that burning fuel creates these “negative externalities” does not imply that no tax on fuel could ever be too high. Economics is precise about the tax that should, in principle, be levied to deal with negative externalities: the tax on a liter of fuel should be equal to the harm caused by using a liter of fuel. If the tax is more than that, its costs (including the inconvenience to those who would rather have used their cars) will exceed its benefits (including any reduction in congestion and pollution).
In the context in which it appears, “exceed” most nearly means

A outstrip
B magnify
C delimit
D offset
E supplant

[Reveal] Spoiler: OA
A


Which of the following best characterizes the function of the highlighted portion of the passage?

A It restates a point made earlier in the passage.
B It provides the evidence on which a theory is based.
C It presents a specific application of a general principle.
D It summarizes a justification with which the author disagrees.
E It suggests that the benefits of a particular strategy have been overestimated.

[Reveal] Spoiler: OA
C


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Joined: 18 Apr 2015
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Kudos [?]: 973 [0], given: 4479

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Re: The most plausible justification for higher taxes on automob [#permalink] New post 01 Feb 2017, 02:57
Expert's post
Explanation

1) From the context, trying to find a synonym: only A fits the bill.

2)
Quote:
Economics is precise about the tax that should, in principle, be levied to deal with negative externalities


The following phrase is a specification of this principle. C is the best.
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Re: The most plausible justification for higher taxes on automob   [#permalink] 01 Feb 2017, 02:57
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The most plausible justification for higher taxes on automob

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