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Multiple Choice
Which of the following is the primary way the government pays for the construction and maintenance of public roads?
A
By selling government-owned land to private companies
B
By printing additional money to cover expenses
C
By borrowing exclusively from foreign governments
D
By collecting taxes from individuals and businesses
Verified step by step guidance
1
Understand the role of government funding in public goods like roads, which are typically financed through public revenue sources.
Recognize that governments primarily rely on taxation as a stable and consistent source of revenue to fund public infrastructure such as roads.
Consider why other options like selling government land, printing money, or borrowing exclusively from foreign governments are less common or practical methods for funding road construction and maintenance.
Recall that printing additional money can lead to inflation, and borrowing exclusively from foreign governments is not a typical or sustainable funding strategy for public infrastructure.
Conclude that the primary and most reliable method the government uses to pay for public roads is by collecting taxes from individuals and businesses.