Mocks

Mocks – 1

Do ONE of the following:

1. (a) explain how the theoretical treatment of perfect competition is useful in analysing transport markets. (10 mks)

(b) Apply the natural monopoly argument to transport. (15 mks)

2. a) What are the special characteristics of air travel? (10 mks)

b) Examine the impact of deregulation on air transport. (15 mks)

3. a) Outline the main transport problems facing the government (10 mks)

b) Government transport policy is set out in White Papers and is built round various themes. Explain the themes and the transport policy. (15 mks)

Mock 2

1. a) Outline the main characteristics of transport investment. (10 mks)

b) Discuss the arguments for and against the PFI. (15 mks)

2. a) Why should aviation pay for its external costs? (10 mks)

b) Examine the difficulties in estimating externalities and identify two alternative methods used to estimate externalities. (15 mks)

3. a) Describe how transport poses sustainability issues. (10 mks)

b) Evaluate the economic argument for subsidising railways (15 mks)

Mock 3

1. a) Government measures to intervene in transport markets to correct market failure can be classified as demand or supply side. Identify and briefly explain at least SIX demand side policies. (10 mks)

b) Explain supply side policies and, with reference to at least THREE supply side policies in other countries to tackle congestion, compare supply side to demand side policies in terms of effectiveness. (15 mks)

2. a) Outline the main characteristics of transport investment. (10 mks)

b) Discuss the arguments for and against the PFI. (15 mks)

3. a) Outline the main barriers to entry in transport. (10 mks)

b) With reference to contestable market theory, explain how making markets contestable benefits the consumer. (15 mks)