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ATE711S - ADVANCE TRANSPORT ECONOMICS - 1ST OPP - JUNE 2022 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCE AND EDUCATION
DEPARTMENTOF MARKETINGAND LOGISTICS
QUALIFICATION:BACHELOROF TRANSPORTMANAGEMENT
QUALIFICATIONCODE: 07BTRA
LEVEL: 7
COURSECODE: ATE711S
COURSENAME: ADVANCE TRANSPORT ECONOMICS
SESSION:JUNE 2022
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
FIRST OPPORTUNITY EXAMINATION
EXAMINER(S) Dr Smart Dumba
Mr. Mukela Mabakeng
Ms. Hilma Nuuyandja
QUESTION PAPER
MODERATOR: Mr Sem Tangeni Kalumbu
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
THIS QUESTION PAPERCONSISTSOF 4 PAGES(Including this front page)
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QUESTION 1
[lxlO Marks]
Answer the following five questions either 'True' or 'False'.
1. A free-market system means government intervention is limited, and supply is not
regulated.
2. The demand for transport is viewed as underived demand.
3. "Elastic demand or elastic supply is one in which the elasticity is greater than one, indicating
high responsiveness.
4. Average generalised costs per kilometre of the trip is calculated using the following
equation;
Cit=PCu-TTu(VOTu + VORu - DCu).
5. How different people value their travel time includes the socio-economic status of an
individual.
6. Whenever a good is sold at a price more than its marginal cost, there is an incentive to
engage in price discrimination.
7. Transport subsidies are aimed at increasing the cost of certain transport modes, such as
public transport.
8. Environmental regulations seek to control the amount, nature and frequency of the positive
environmental benefit generated by transport-related activities.
9. Social welfare is maximised where the Marginal Social Cost curve meets the Marginal Social
Benefit curve.
10. Variable costs refer to the costs that remain unchanged as the movement and level of traffic
change.
Sub-total: [10 Marks]
QUESTION 2
2.1 Define the following terms
a) Economies of scale
(5 Marks)
b) First best pricing
(5 Marks)
c) Second best pricing
(5 Marks)
d) First-degree price discrimination
(5 Marks)
Sub-total: [20 Marks]
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QUESTION 3
3.1 Using examples, discuss the reasons for government intervention in the transport market
(10 Marks)
3.2 Explain the economic principles that underpin road pricing.
(10 Marks)
The main economic principles relate to reducing market failure, namely to produce a better
allocation of resources in the way that roads are currently used. At present, the prices paid
by road users are muddled. Some (e.g. peak users in central areas of cities) do not pay
enough, and others (e.g. rural road users) pay too much. Marginal social costs do not equal
marginal private costs. Road user charging on a national scale seeks to address this problem
by taking into account when, where and in what traffic conditions vehicles are used.
3.3 Describe and explain the following graph as it relates to transport induced negative
environmental externalities?
{10 Marks)
Costand
benefit
Marginal
Sod.llCo,t
Marginal
Social Bcn?fil
Q
Quantity
Sub-total: (30 Marks]
QUESTION 4
4.1 Differentiate between mobility and accessibility and discuss how their definitions affect
transportation projects and programs?
(20 Marks)
4.2 Economic evaluation is vital in transport investments as it involves the assessment of the
net value of projects and policies. A framework for evaluation specifies the basic structure
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of the analysis to allow for clear and consistent evaluation and comparison. Name and
discuss the aspects that form a basic evaluation framework of a transport project or policy?
{20 Marks)
Sub-total: [40 marks]
Grand Total: 100 marks
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