After you have studied Economics in the News on pp. 386387, answer the following questions: a. What

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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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Microeconomics

ISBN: 978-1292094632

12th edition

Authors: Michael Parkin

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