Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased public transportation usage will reduce traffic congestion and improve air quality, benefiting all residents.
B
Subsidizing public transportation will only benefit those who use it, with no effects on others.
C
By using public transportation, individuals will save money on personal vehicle expenses, thus benefiting only themselves.
D
Increased public transportation subsidies will lead to higher fares for users, deterring overall usage.
Understanding the Answer
Let's break down why this is correct
Answer
When a local government subsidizes public transportation, it makes it cheaper for people to use buses and trains. This encourages more people to ride instead of driving cars, which can reduce traffic congestion and pollution in the area. The positive externality here is the benefit that everyone enjoys when more people use public transport, such as cleaner air and less crowded roads. For example, if a family decides to take the bus instead of their car, not only do they save money, but they also help create a healthier environment for their neighbors. Overall, this policy aims to create a community where public transport is a more attractive option, benefiting everyone.
Detailed Explanation
When more people use public transport, there are fewer cars on the road. Other options are incorrect because This answer suggests that only users gain from public transport; This answer focuses only on personal savings.
Key Concepts
Positive Externalities in Consumption
Government Subsidies
Public Goods
Topic
Positive Externalities in Consumption
Difficulty
medium level question
Cognitive Level
understand
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