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points please asap
Answers:
How save American auto companies?
Economists refer to congestion charges as "externallity" charges. These are primarily an effort to accurately judge and assign to the parties of a transaction the hidden or "external" costs of a transaction.Can you ride a bike across the highway?
For example, if you drive a car then there is a transaction between you and the oil company that provided the fuel. The cost to the taxpayer, to the general public in terms of environmental damage and the cost to commerce caused by your presence on the road; are all examples of external costs that are not reflected in the transaction between you and the fuel provider.
Congestion charges are just one form of an externallity charge.
The advantage of course, is to require the parties to a transaction to bear all the costs, rather than just those that are apparent between buyer and seller.
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