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PP2-2
Passage 4
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).
1. In the context in which it appears, “exceed” most nearly means
A. outstrip
B. magnify
C. delimit
D. offset
E. supplant
2. Which of the following best characterizes the function of the indicated 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.
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