Economics class: Profit motive to return to British rail network as part of long-awaited shake-up

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

• Market structures, welfare economics

Click to read the article below and then answer the questions:

Profit motive to return to British rail network as part of long-awaited shake-up

• Distinguish between nationalisation and privatisation

• Following privatisation in 1993, most passenger rail services were run by privately owned train operating companies (TOCs) under multiyear franchises. Using a diagram, analyse the difficulties associated with introducing competition into the railway industry

• Define consumer surplus

• Evaluate whether a dynamic pricing model is fair to consumers

Gavin Clarke, Emmanuel College