Exam questions

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

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

With the aid of a diagram explain how atmospheric pollution associated with increased transport use causes a misallocation of resources.(10 mks)
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 mks)

Mark schemes