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Homework answers / question archive / It is not uncommon for major cities to implement policies to reduce the number of cars being brought into the central business district (CBD)

It is not uncommon for major cities to implement policies to reduce the number of cars being brought into the central business district (CBD)

Economics

It is not uncommon for major cities to implement policies to reduce the number of cars being brought into the central business district (CBD).  Why might governments / cities wish to reduce the number of cars being brought into the CBD?  How might they do this (what policies might governments / cities use)? Explain with the use of diagram(s). [2 marks]

(b) There is often litter along highways but rarely in people's gardens. Provide an economic explanation for this fact? [1 mark]

(c) Federal and state governments in Australia recently banned the use of single use plastic bags. Describe the externality that arises from plastic bags and, on a diagram, illustrate how plastic bags create a deadweight loss.  [1 1/2 marks]

(d) Why might a complete ban on plastic bags be inefficient?

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