Question 19M.1.SL.TZ2.2a
| Date | May 2019 | Marks available | [Maximum mark: 10] | Reference code | 19M.1.SL.TZ2.2a |
| Level | SL | Paper | 1 | Time zone | TZ2 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Explain why public transport, such as buses and trains, might be under-provided in a market economy.
[10]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definition of under-provision, market economy
- diagram to show a positive externality of consumption
- explanation of how the use of public transport results in marginal social benefit exceeding marginal private benefit
- examples of under-provision of public transport.
This question proved to be the most challenging tor students on the paper. The term ‘public transport’ confused many students who viewed bus, tram and train travel as public goods, which they are not. This led to many answer that focused on public good theory, which took their answers off the central theme of the question, which was to get students to consider public transport as a merit good because of the positive externalities of its provision and consumption. This was, again, quite confusing for students because the benefits of public transport can be seen as the reduced negative externalities of private transport such as the congestion and pollution associated with cars. The highest achieving responses focused on how increasing the provision and consumption of, for example, trains can reduce journey times for workers and improve overall productivity in the economy. It was good to see effective examples of countries where governments had supported public transport schemes.
