Question 2 Highways are built using tax revenue. Therefore asking tax payers to pay a toll to drive on a highway reduces efficiency. Is this true or false ? Explain your answer carefully.

This statement is true. When taxpayers are asked to pay a toll to drive on a highway, it reduces efficiency because it creates a barrier to entry for some individuals who may not be able to afford the toll. This can lead to a decrease in the overall usage of the highway, which can reduce the benefits that come from having a well-maintained and efficient transportation system. Additionally, the toll can create a disincentive for people to use the highway, which can lead to increased congestion and decreased productivity.