Chapter 21 - Assignment 3: Should Amtrak be Subsidized?

1. According to this statement, how does the federal government display an "air/highway bias?"
2. Are highways an example of a public good (even though there may be some congestion costs)? Explain.
3. Is a gasoline tax an example of a "user fee" designed to cover the cost of governmental provision of highways?
4. If trains are more energy-efficient and produce less pollution than other forms of transportation, does this justify a subsidy for Amtrak? What other solutions might be used?