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Traffic congestion is a problem in many cities. Among the possible ways of reducing congestion are allocating more resources to building roads, taxing petrol and
Traffic congestion is a problem in many cities. Among the possible ways of reducing congestion are allocating more resources to building roads, taxing petrol and subsidizing bus travel.
Describe how resources are allocated in a market economy.
Explain why the social costs of car use are greater than the private costs.
Using the principles of demand and supply, describe the effect of a tax on petrol on
the market for petrol.
Discuss whether bus travel should be subsidized by the government.
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