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Microeconomics , Fifth Edition
William Boyes, Arizona State University
Michael Melvin, Arizona State University
Internet Exercises
Should Amtrak be subsidized?


Read Ross B. Capon's statement before the House Subcommittee on Transportation.

Questions

  1. Are the survey responses to the "OmniTel" poll an example of "contingent valuation"? Why or why not?
  2. According to this statement, how does the federal government display an "air/highway bias?"
  3. Are highways an example of a public good (even though there may be some congestion costs)? Explain.
  4. Is a gasoline tax an example of a "user fee" designed to cover the cost of governmental provision of highways?
  5. If trains are more energy-efficient and produce less pollution than other forms of transportation, does this justify a subsidy for Amtrak? What other solutions might be used?




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