27 After you have studied Economics in the News on pp. 118–119, answer the following questions.

a What is the method used to allocate motorway space in the UK and what is the method used in Singapore?

b Who benefits from the UK method of motorway resource allocation? Explain your answer using the ideas of marginal social benefit, marginal social cost, consumer surplus and producer surplus.

c Who benefits from the Singaporean method of road use resource allocation? Explain your answer using the ideas of marginal social benefit, marginal social cost, consumer surplus and producer surplus.

d If road use were rationed by limiting drivers with evendate birthdays to drive only on even days (and odd-date birthdays to drive only on odd days), would motorway use be more efficient? Explain your answer.