Exam questions (June 2006)

1. One of the problems of achieving a more sustainable transport policy is dealing with peaked demand.
(a) Explain the consequences for passenger transport providers of the peaked demand which they inevitably face. [10]
Discuss how government policy can manage passenger transport in more sustainable ways. [15]

2. Even though more and more passengers are flying each year to more and more destinations, much controversy still surrounds the provision of additional airport capacity.
(a) Explain the economic benefits of constructing new airports and runways. [10]
Discuss the extent to which forecasts of demand for air travel should be used as the basis for decisions on airport capacity in the UK. [15]

3. (a) Using a diagram, explain how taxation can be used to make the operators of goods vehicles pay the full social costs of their use. [10]
(b) Discuss the likely economic effects of increased road haulage operating costs on the freight transport industry, its customers and the economy as a whole. [15]

Answers/marking guidelines here

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