Public transport made free in Luxembourg

//Public transport made free in Luxembourg

Public transport made free in Luxembourg

CNN: Luxembourg makes all public transport free

Article published: March 2, 2020

IB Economics syllabus: Microeconomics (positive externality of consumption, government intervention)

This article talks about public transport becoming completely free in all of Luxembourg. This is because the richest country of the EU can afford to absorb the costs of public transport as they believe that the benefits to the population outweigh the costs. Thus, as public transportation can be considered a merit good, the government provision should boost consumption, reducing the market failure. You can also talk about car consumption leading to negative externalities such as congestion and that this policy should solve this problem. Also, make sure you evaluate the policy and don’t forget to talk about possible disadvantages.

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By | 2020-03-05T13:00:59+00:00 March 5th, 2020|Micro|Comments Off on Public transport made free in Luxembourg

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 8 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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