After you have studied Economics in the News on pp. 386387, answer the following questions: a. What
Question:
After you have studied Economics in the News on pp. 386–387, answer the following questions:
a. What is the source of revenue for constructing and maintaining the transportation infrastructure?
b. Why has that revenue source not grown fast enough to deliver an efficient scale of infrastructure provision?
c. What other revenue sources can you suggest that could provide a solution to underprovision?
d. How would you expect population growth to influence the marginal social benefit of highways and bridges?
e. Illustrate your answer to (d) by drawing a version of the figure on p. 385 that shows the effect of an increase in population.
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