Economics class: Boris Johnson to announce £3bn shake-up of England’s bus network
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Demand & Supply, Market Structures, Market Failure
Click to read the article below and then answer the questions:
Boris Johnson to announce £3bn shake-up of England’s bus network
Using a demand and supply diagram, analyse the effects of ‘a 40 per cent cut in local authority bus funding.’
Distinguish between nationalisation and privatisation.
The article refers to the ‘1980s deregulation of buses under Margaret Thatcher’s Tory government.’ Using a market structure diagram(s), analyse the potential gains from deregulation.
‘A full double-decker bus can take as many as 75 private cars off the road, so the benefits of buses in cutting pollution and reducing traffic jams are as clear as daylight.’ Using a diagram, analyse the positive external benefits associated with increased usage of bus services.
Gavin Clarke, Emmanuel College
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