Which of the following policies is MOST likely to reduce traffic congestion in a large metropolitan area because people usually exploit opportunities to make themselves better off?
A)a limited number of free early-bird parking passes given only to those who arrive prior to 6 A.M.
B)a toll road that requires each car to pay a fee to enter the city center
C)an increase in the price of subway and bus fare to and from the city
D)asking citizens to carpool

Question

Quizplus · Accepted Answer

People are rational and will weigh the costs and benefits of using a toll road. If the toll is high enough, some people will choose to use alternative modes of transportation or travel at different times of day to avoid paying the fee. This can lead to a reduction in traffic congestion. Options A, C, and D may have some impact on reducing traffic congestion, but they are unlikely to be as effective as a toll road because they do not create a strong enough incentive for people to change their behavior.

Which of the Following Policies Is MOST Likely to Reduce