Public policy solutions

Public policy solutions(a) Perform an economic analysis of congestion charges as a public policy instrument. (In your answer, consider: what sort of public policy instrument is a congestion charge?How does it work in economic terms?) (6 marks)(b) What other public policy instruments can the government employ to combat traffic congestion on busy public roads, and how do these differ from congestion charges? (6 marks)Question 3: Efficiency of public policy solutions(a) Based on your analysis in Question 2(a) above, how should congestion charges be set in order for congestion problems to be corrected in a way that maximises the overall welfare of society? Explain. (4 marks)(b) Do you think that the government will be successful in employing congestion charges tocorrect congestion problems and restore efficiency? Why or why not?(6 marks)

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