Practise selecting taxes, subsidies, permits, regulation, provision, property rights or nudges for specific failures and evaluating elasticity, monitoring and unintended effects.
What would supporters of a nationalised public transport service expect to be the most likely outcome from the privatisation of train and bus services?
fewer destinations served by trains and buses
lower fares
more frequent services to all destinations
more people employed in public transport services
A
The government can use policies to try and reduce the environmental damage caused by the amount of rubbish (garbage) created by firms and households.
Which policy to reduce rubbish is most likely to lead to government failure?
an incentive payment for firms who reduce the levels of rubbish
a tax on the amount of rubbish a firm or household creates
an advertising campaign about the problems created by rubbish
government grants to firms researching how to safely dispose of rubbish
B
Singapore has one of the highest population densities in the world. It discourages car use through a high tax on second cars.
Which additional policy would help to relieve road congestion in the short run?
limiting the total number of car licences issued
encouraging restrictions on the size of families
improving infrastructure by building new roads
replacing diesel cars by electric cars
A