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Question: To solve the congestion problems of the big cities, Congress decides to increase the Federal gasoline tax by 25 c per gallon, with a rebate to largely rural states; the net effect will raise approximately $20 billion per year. The money will be spent in the urban areas, but the decision has yet to be made whether the money will be used to improve the highway system or upgrade mass transit facilities. As an executive of the following affected industries, indicate which choice you would prefer.

(A) Steel industry.

(B) Homebuilders.

(C) Airlines.

(D) Construction machinery.

(E) Import/export broker.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93115123

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