The following data show the relationship between the number of drivers who leave for work at 8:00 a.m., their average commute time, and their marginal benefit of commuting. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Number of Drivers } \
\text { Who Leave at } 8 \text { am }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Commute Time }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Benefit }
\end{array} \
\hline 100 & 30 \text { minutes } & \$ 10 \
\hline 200 & 65 \text { minutes } & \$ 8 \
\hline 300 & 110 \text { minutes } & \$ 4 \
\hline 400 & 170 \text { minutes } & \$ 3 \
\hline 500 & 260 \text { minutes } & \$ 1 \
\hline
\end{array}$$ One way for the government to increase economic efficiency would be for it to:
A)require all 500 drivers to collectively decide when each should leave for work
B)subsidize gasoline consumption
C)require employers to allow workers to arrive late for work
D)charge a toll to use the highway during rush hour

Question

The following data show the relationship between the number of drivers who leave for work at 8:00 a.m., their average commute time, and their marginal benefit of commuting. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of Drivers } \
\text { Who Leave at } 8 \text { am }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Commute Time }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Benefit }
\end{array} \
\hline 100 & 30 \text { minutes } & \$ 10 \
\hline 200 & 65 \text { minutes } & \$ 8 \
\hline 300 & 110 \text { minutes } & \$ 4 \
\hline 400 & 170 \text { minutes } & \$ 3 \
\hline 500 & 260 \text { minutes } & \$ 1 \
\hline
\end{array}$$ One way for the government to increase economic efficiency would be for it to:
A)require all 500 drivers to collectively decide when each should leave for work
B)subsidize gasoline consumption
C)require employers to allow workers to arrive late for work
D)charge a toll to use the highway during rush hour

Quizplus · Accepted Answer

The best choice for increasing economic efficiency would be to charge a toll to use the highway during rush hour. This would cause some drivers to shift their commute to a different time (when the toll is not charged), reducing congestion during rush hour and decreasing the average commute time for those who continue to use the highway. Additionally, the toll revenue could potentially be used to fund improvements in public transportation options, further reducing the number of drivers on the highway during rush hour.

The Following Data Show the Relationship Between the Number of Drivers