Multiple Choice

A city is debating two policies to reduce traffic. Policy 1 is a standard congestion fee, charging drivers to enter the downtown area during peak hours. Policy 2 offers a significant cash payment to citizens who voluntarily and permanently surrender their driver's licenses. While both policies use money to influence behavior, Policy 2 is more likely to be met with public opposition on the grounds that it is a 'repugnant transaction.' Which of the following best explains the core reason for this distinction?

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Updated 2025-08-14

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