Question 22M.3.HL.TZ0.2a.vii
| Date | May 2022 | Marks available | [Maximum mark: 2] | Reference code | 22M.3.HL.TZ0.2a.vii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Define | Question number | a.vii | Adapted from | N/A |
The causes and costs of congestion
In the last 10 years, India’s road network has increased by 34 % while vehicle registrations have increased by 200 %. Additionally, India’s strong rate of economic growth has resulted in increased demand for motor vehicles.
Traffic congestion involves slower speeds and increased journey times, which impose higher costs on the economy. Congestion has a range of indirect impacts including environmental harm, inefficient use of resources and reduced quality of life.
Figure 3 shows the growth in road passenger traffic in India and China from 2000 to 2017.
It can be seen that there has been a huge increase in the use of road passenger traffic in India. It has been argued that Indian workers who implement rational consumer choice would assess the costs and benefits of using cars and, as a result, many would switch to alternative forms of transport.
Figure 3
Define the term rational consumer choice.
[2]
Although many candidates were able to specify the concept of utility maximization, there were also a significant number of fairly vague responses which relied on the idea that costs and benefits would be assessed. A surprising number of responses simply rearranged the term, suggesting that when consumers make choices by acting rationally, this is rational consumer choice.
