According to the Case in Point Titled "Road Pricing in Singapore

question 95

Multiple Choice

According to the Case in Point titled "Road Pricing in Singapore," when driving during rush hour in most major cities, the individual driver:

• A) creates a marginal cost to other drivers that is greater than the average cost that the individual driver actually faces.
• B) creates a marginal cost to other drivers that is less than the average cost that the individual driver actually faces.
• C) creates a marginal cost to other drivers that is equal to the average cost that the individual driver actually faces.
• D) creates a marginal cost to other drivers but does not face any average cost unless a price system is used.

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Definitions:

Unilateral Transfers

transactions in which something of economic value is provided by one party to another without receiving anything in exchange, such as foreign aid or remittances.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations and marked by significant battles, genocides, and the eventual victory of the Allies.

Currency Restrictions

Regulations or limits placed on the exchange or trade of a country's currency with others to control the currency's value and balance of payments.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net income transfers, indicating the flow of goods, services, and payments in and out of the country.