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The economic problem

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Question 9

During a parliamentary select committee on urban planning, different advisors make statements regarding the proposed introduction of a municipal congestion charge. Which of the following represents a positive economic statement?

The municipal authority ought to allocate all revenues from the congestion charge to subsidise public bus fares.

A congestion charge is the fairest mechanism to internalise the external costs of motoring in urban areas.

Levying a £15£15£15 daily fee on vehicles entering the city centre will lead to a reduction in retail sales for local businesses.

It is unacceptable that low-income commuters pay a higher proportion of their disposable income on congestion charges than high-income commuters.

The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem