Virtual Learning Arcade: Worksheet 1
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Worksheet 1 - Transport Model - Market Failure - A2 Level
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You should be able to answer the following question by the end of this worksheet;
"Traffic congestion is an example of market failure."
- Explain the meaning of this statement
- how might the increase in road congestion be explained
- examine the likely effects of one policy designed to reduce traffic congestion
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CLASS DISCUSSION: THE ISSUES
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What are the social costs associated with car congestion?
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BACKGROUND INFORMATION
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Use the Tackling traffic congestion simulation to answer the following questions.
- Define an externality.
- Draw a diagram to illustrate a consumer created externality.
- Describe the pattern of traffic in the UK over the last 40 years.
- What information can you find concerning the potential solutions for traffic congestion?
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CLASS DISCUSSION: THE SOLUTIONS
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What are the potential solutions to traffic congestion?
Outline the possible disadvantages of these solutions.
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TACKLING TRAFFIC CONGESTION
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Use the Tackling traffic congestion simulation to answer the following questions.
For each of the following policies, (i) increase in road charges and (ii) the introduction of a subsidy on public transport, answer the questions;
- Name the policy.
- Discuss why it should reduce the level of traffic congestion.
- What are the disadvantages of the policy?
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What happened to
- car traffic
- bus traffic
- underground traffic?
- Would you expect this outcome? Explain your answer
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CLASS DISCUSSION: YOUR FINDINGS
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Can traffic congestion be reduced?
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