6. Road space - as congestion increases, the non-rivalry characteristic has been undermined - because one additional drivers use of the road will further restrict the use of others. Road space is ?
A quasi-public good
Private good
Public good
7. Road pricing has been introduced in Singapore. In the first year, it saw a ____ fall in peak traffic, a reduction in the number of multiple trips in the charging zone and improved vehicle speeds.
18%
20%
16%
25%
8. Motorists should be charged for the externalities they create - the externalities should be ?
Internalised
Taken account of in the marginal private cost
9. An alternative to road pricing is to build more roads (increase supply) in order to tackle road congestion. Only a short term solution
True
False
10. ____________ can become a more effective substitute for the private car where the system is reliable, efficient, clean and safe with a high degree of connectivity. True of many urban systems in e.g. France, Germany
Public transport
Private transport
Taxi services
11. Prices would start from as little as ____ a mile on rural country lanes. The maximum price would be _____ on busy motorways like the M25 at peak times.
3p,1.40
2p, 1.34
4p,1.26
12. What are the problems of road pricing?
High set up costs of introducing and controlling road pricing, opportunity cost of this, cars - highly price inelastic - substitutes unreliable, displacement of road traffic, external costs to third parties
High set up costs, opportunity cost of this, cars - highly price elastic, displacement theory, social costs to third parties
