8. A privatised rail industry does NOT allow which thing?
A competitive market
Increased competition
Natural monopoly
Increased contestability
More productive and allocative efficiency
Specialisation
9. Which one of these is NOT a form of regulation for the rail industry
RPI X formula
Rate of Return
CPI X formula
Yardstick regulation
10. What year was the UK rail industry nationalised and operated by a public cooperation?
1996
1946
1958
11. Open Access companies are able to compete against franchise holding firms. e.g.?
Grand Central and Hull Trains
Virgin Trains
National Express
12. The rail market may not be contestable because there are high start up costs, economies of scale of established firms, restrictions on where passengers can be picked up/dropped off, and limited availability of rolling stock.
True
False
13. The DFT invites TOCs to bid for a _________ to run a given rail service.
Franchise
Train
Amount of time
14. Which TOC could NOT afford their franchise payments (perhaps their costs were higher than expected)
National Express
Virgin Trains
Hull Trains
15. What crash occurred in 2006?
Oxford street crash
Hatfield crash
Mile End crash
16. Who regulates the rail industry?
The Transport Committee of Rail Regulation (TCRR)
The Office of Rail Regulation (ORR)
The Ministry of Rail Regulation (MRR)
17. The subsidy given to TOCs to ensure loss making but socially essential services operate e.g. rural lines and late night services. What is this?
Public service obligation
Government failure
Cross-subsidisation
18. Which barrier to entry is not an issue in the train passenger market?
Sunk costs
Start up costs
Brand loyalty
Economies of scale
19. Decades of underinvestment in infrastructure and increasing demand for rail travel means the current network is unable to meet?
Peak time demand
Demand
Productive efficiency
20. Challenges rail privatisation faced - Infrastructure and operations are?