1. Discuss the rationale for the economic regulations of transportation
The reason for the economic regulations of transportation is to create the monopolistic industry into a more competitive one where prices will be more reasonable for the consumer as transportation is very important to the movement of everyday goods.
The government in turn will determine if a firm can enter an industry; determine which market(s) a firm can serve in that industry; and determine the prices that firm can charge customers in the markets it serves so it can keep it being a competitive industry.
4. How do the police powers of the Constitution affect Transportation?
It grants the states the right to protect the health and welfare of their citizens. The states have used this power to establish safety regulations governing the safe operations of trains through a state, and to limit the maximum speed, height, length, and weight of tractor-trailers. These regulations are not standard from state to state because of the differing political, economic, sociological, and geographic conditions. However, the common denominator in state safety regulations is that all states regulate transportation safety matters.
9. What are transportation user charges? What is the purpose of such charges?
User charges are assessments or fees charged by public bodies against carriers; they are to compensate the public for assistance during modal conception and encouragement and some user charges are assessed to finance construction. The federal fuel tax, airport landing fees and road tolls are examples of these charges as the axes help to pay for the construction of infrastructure that is needed to support the transportation industry.
Case 3-1 Q2
2. In each of the scenarios above identify the benefits versus the costs for both viewpoints.
For the regulations of the Department of Homeland Security, the benefits of having them is that they will have more thorough inspections