Question: 4 e) Why do matching capital grants lead to the purchase of too many new buses and not enough maintenance? How does highway construction funding

e) Why do matching capital grants lead to the purchase of too many new buses and not enough maintenance? How does highway construction funding introduce a similar inefficiency? (4)

f) What bias would the assumption that cars would not get any cleaner introduce to pollution savings from mass transit? What if the need to rebuilt rail systems every 30 years was ignored? (3)

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