Main stories
Energy market review Energy market - to be investigated by new competition watchdog..more
Budget logo Budget analysis - latest news
Mark Carney Bank of England - downgrades unemployment threshold

UK growth - GDP up 0.8% in the third quarter of 2013

UK unemployment - down to 7.1% as jobs market improves. More..

The global economy - IMF revises growth forecasts..More
Royal Mail - privatisation comes a step closer with announcement of IPO. More...
   
UK to launch Islamic Bond ..more
Mortgage approvals - highest since Jan 2009...More
Bank of England launches 'forward guidance' policy. Read the full story.
The UK's top 40 Universities for Economics.
Public spending - £11.5bn cuts announced
UK growth - UK avoids triple-dip recession
Benefit cap  - kicks in at £500 per week
UK Budget 2013 - analysis and comment
Student Guide to university Clearing
Quantitative easing - put on hold
Poverty - recession and relative poverty
Welfare reform - the end of universal benefits
Underemployment - over 3 million
CPI inflation - at 2.7%
   
Energy prices - set to rise
Competition policy - new regulator planned
Greek bailout - Euro problems
Top international universities for Economics
Top UK universities for Economics
OECD - latest forecasts for the OECD countries..More
Updates Get the latest updates on the UK economy, including GDP, inflation...More...
  Study guides Latest resources for students from Economics Online.  More...
How to answer data response questions. More...
Multiple choice tests Improve knowledge and understanding of Economics. More...
Market structures revision presentations
Economics tuition - from specialist tutors. Find out more..or REGISTER
City of London The financial crisis reveals a fundamental weakness .. More...
Recommended texts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Congestion

Question 1

Road traffic congestion has become an increasingly important issue in recent years. The only way to completely eliminate congestion would be a complete ban on road traffic, but this would not be a socially efficient solution.

  1. Why are people driving more?

  2. Why is road congestion and example of market failure?

  3. What are the private and external costs of congestion?

  4. Evaluate three alternative remedies for road congestion.

  5. Should the London congestion charge be applied to other UK cities?

  6. Why would a complete ban on road traffic be socially inefficient?

Question 2

The price mechanism works to allocate scarce resources in three main ways: to ration scarce resources; to send a signal to consumers and producers and; to provide incentives to reward certain kinds of behaviour and penalise other types.

Using these three concepts explain how road pricing works to reduce traffic congestion.