faifai0714 wrote:
According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.
Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?
a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised. irrelevant to success of raising funds
b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines. irrelevant to raising funds
c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase. hmmm?
d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved. hmmm?
e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase. irrelevant
Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?
a) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised. irrelevant to success of raising funds
b)Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines. irrelevant to raising funds
c) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase. hmmm?
d) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved. hmmm?
e) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase. irrelevant
Between C & D, think of income when comparing the answer choices. Which one will lead to the least amount of revenue generated? C-the revenue will remain the same initially, but will eventually increase. D-a 20% drop in toll fees is a permanent drop. Total Revenue[future + present] (C) > Revenue [future + present] (D)
Since Rev D is less, the answer will be D
Please give me kudos
