After you have studied Reading Between the Lines on pp. 120-121, answer the following questions.
a. What is the method used to allocate highway space in the United States and what is the method used in Singapore?
b. Who benefits from the U.S. method of highway resource allocation? Explain your answer using the ideas of marginal social benefit, marginal social cost, consumer surplus, and producer surplus.
c. Who benefits from the Singaporean method of highway resource allocation? Explain your answer using the ideas of marginal social benefit, marginal social cost, consumer surplus, and producer surplus.
d. If road use were rationed by limiting drivers with even-date birthdays to drive only on even days (and odd-date birthdays to drive only on odd days), would highway use be more efficient? Explain your answer.