arty 1.8
17
Market Failuro,
1.8.
Study the extract below and answer the questions that follow.
TOLL ROADS-WAS THIS THE
BEST DECISION?
There are major
debates
15
Ma
surrounding toll roads in South
Africa, with many
consumers
unhappy and undecided whether
it will really benefit the
economy..
The major question is whether
the
government has examined
all the
positives and negatives regarding
toll roads.
[Adapted from Business Times,
May 2013]
1.8.1. Explain the term toll.
1.8.2. What method can the government use to ensure that the introduction of toll roads is the
best decision?
1.8.3. How can toll roads lead to market failure?
1.8.4. Argue in favour of the implementation of toll roads.
(2)
(2)
(2)
(2 x 2) (4)

Method for ensuring best decision: The government can conduct comprehensive cost-benefit analyses, seek public input through consultations, and assess potential impacts on the economy and society.

Market failure from toll roads: Toll roads can lead to market failure by creating inefficiencies, such as barriers to entry for certain businesses, unequal access based on ability to pay, and potential negative externalities like increased traffic congestion.

Argument in favor of toll roads: Toll roads can generate revenue for infrastructure development, help manage traffic flow, and provide a way to fund and maintain transportation systems efficiently.

Learn more about Toll roads and government policies here:

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