Economy, asked by mahamajaz04, 9 months ago

Discuss whether or not a government should subsidise bus transport.

Answers

Answered by Esha058
8

Answer:

it may encourage a rise in bus travel

It may reduce poverty / redistribute income

The poor tend to use buses more than the rich

Better quality travel

Bus travel creates fewer external costs than car travel

Reduce pollution

Reduce traffic congestion

Increase employment / reduce unemployment

Increase labour mobility

It will involve an opportunity cost

The government might instead spend more on e.g. education / raise taxes

Bus companies may not pass on the subsidy to passengers

Subsidies may make bus companies complacent

Not try to keep their costs low

May not improve quality

Rail transport may be more efficient

May provide more social benefits

Explanation:

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