1. (i) Why have governments in EuropeandNorth America deregulated the air transport industry and what impact have these policy changes had? (ii) What is the economic justification for government intervention in the transport sector? (iii) List at least 6 examples of policy instruments available to governments for regulatingtransportindustriesandbrieflyindicatetheireffectivenessin achieving government objectives.

1. (i) How does transportation contribute to regional and national economies? Please cite examples. (ii) Who are the main groups of players in the transportation system? How do transport firms (carriers) differ from the standard theoretical model of the firm usually presented in microeconomic analysis?

1. (i) What are the main steps involved in undertaking a cost-benefit analysis of a road construction or improvement project? (ii) How would you value travel time savings, accident cost savings and vehiclerunningcostsavingsinacost-benefitassessmentofaroad construction project? (iii) What additional considerations should be included in appraising a road construction or improvement project?

1. (i) Explain why a congestion toll can bring about a welfare improvement. Illustrate your answer. (ii) Briefly outline how analysis of transport demand elasticities can improve urban transport policy. In your answer, you should explain the impacts of different types of pricing and their effects on travel behaviour. (iii)How and why should public transport usage be encouraged?

1. (i)Whatdifficultiesariseinundertakingeconomicanalysisofa transportfirmandtransportindustrycosts? (ii)Howmightatransportfirmdealwithdailyandseasonalvariations indemand?

1. Writeanessayononeofthefollowingtopics: (i)Whatchallengeswillnewtransporttechnologiessuchas autonomousvehiclesposeforcarriers,regulatorsandusersinthe future? (ii)Outlineapproachestotransportdemandmodellingandreview theirapplicationinrelationtoshippingorurbantransport (iii)Globalairtransportmarketstructures,competitionandchallenges