Exam questions (June 2008)

1. (a) Explain how economists make forecasts of air passenger transport demand.
[10]
Discuss the implications for government policy of the projected increase in
demand for air passenger transport. [15]

2. (a) Explain the factors that have influenced the growth in demand for private car
use. [10]
Discuss the extent to which a national road user charging scheme could reverse the growth in demand for private car use. [15]

3. With the aid of a diagram explain how atmospheric pollution associated with
increased transport use causes a misallocation of resources. [10]
Discuss the extent to which increased indirect taxes on transport users might
correct the market failure caused by atmospheric pollution associated with
increased transport use. [15]

Answers/Marking guidelines here