Microeconomic 3

To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu.
This week we are going to examine substitute goods, highways and a bit about how we pay for highways.Highway construction and maintenance are funded mainly by motor fuel taxes (the gasoline tax). There is a federal gasoline tax (an excise tax) which is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel. Then there are state taxes per gallon and, in some states, a sales tax as well as a gallonage tax. Since only those who have vehicles pay the motor fuel tax, it is also called a User Fee.Which brings us to this week’s discussion topic: Toll Roads.
Assignment Summary:
Watch the video above.
What are the advantages and disadvantages of toll roads for driver? Why might an individual prefer to pay a toll than to use a free road?
Are there other ways to pay for highways other than tolls or higher motor fuel taxes? (Oregon is researching an alternative user fee system, you may wish to search for that information.)
Are there environmental aspects to the use of toll roads versus free roads?
Post your views to the discussion board and refer to at least two different concepts from this week’s Chapters. Your illustration of concepts MUST include an explanation why you think they are relevant to the week’s topic using specific information from the articles, videos and other research that you have done.