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Suppose the government decides to increase taxes on gasoline towards the goal of reducing noise pollution and traffic congestion to their optimal levels. What is the purpose of this decision?

1) To increase government revenue
2) To encourage the use of public transportation
3) To reduce the consumption of gasoline
4) To promote the use of electric vehicles

1 Answer

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Final answer:

The purpose of increasing taxes on gasoline is to reduce its consumption and promote alternatives to reduce noise pollution and traffic congestion.

Step-by-step explanation:

The purpose of the government's decision to increase taxes on gasoline is to reduce the consumption of gasoline. By increasing the cost of gasoline through taxation, the government aims to discourage its use and promote more sustainable alternatives. This decision serves the goals of reducing noise pollution and traffic congestion to their optimal levels.

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