Scenario 1A:

Air quality in London remains dangerously low. Restrictions on travelling during the lockdown had a quick positive effect on the quality of air. Cities around the world are already thinking of possible measures that could maintain the quality of the air post lockdown.

Evaluate the measures that have been taken, or are being considered, to ensure that the quality of air in London is improved on a more permanent basis. Consider the impact of such measures on industries, small businesses, commuters and local communities. Can London learn from other cities? Use the articles in the reference list and your own knowledge to reflect on efficiency of these measures.  You should include a cost/benefit diagram analysing why people do not usually consider the external cost of their actions before answering the question:

 

How can London keep air clean after the lockdown while ensuring a recovery? 

 

Note: The issue in this question is market failure caused by externalities and possible government failures. When discussing the model, you should refer to the lectures, lecture notes and seminars in week 9 in term 1.

 

Scenario 1B:

In April, US oil prices crashed into negative territory for the first time in history. Since then the prices have recovered but remain as low as $40 a barrel. Discuss the reasons for the fall in the price of oil. You should include a supply/demand diagram in your answer.

 

Your conclusion should clearly answer the question below and provide rationale for the answer.

 

What are the expectations for the oil market? 

 

Note: The issue in this question is covered in week 5 of term 1. You are expected to produce your own diagrams and not simply copy them from other sources.

 

Micro Economics essay