, QUESTION 1 1.1 Briefly explain the role of transport and
competition in the economy. (4) 1.2 What two groups of
users have a need for transport? Explain in full how we
distinguish between these two groups. (4) 1.3 Distinguish
the difference between common costs and joint costs,
make use of examples to demonstrate your understanding.
(6) 1.4 A transport enterprise may follow and three types
of pricing to determine tariff Identify and explain in your
own words each type.
QUESTION 1
1.1 Role of Transport and Competition in the
Economy (4 marks)
Transport plays a critical role in the economy
by facilitating the movement of goods, services,
and people, which is essential for economic
growth and development. It connects producers
to consumers, enables trade, and supports
supply chains, ensuring that resources are
allocated efficiently. Transport also reduces the
cost of production and distribution, making
goods and services more affordable and
competition in the economy. (4) 1.2 What two groups of
users have a need for transport? Explain in full how we
distinguish between these two groups. (4) 1.3 Distinguish
the difference between common costs and joint costs,
make use of examples to demonstrate your understanding.
(6) 1.4 A transport enterprise may follow and three types
of pricing to determine tariff Identify and explain in your
own words each type.
QUESTION 1
1.1 Role of Transport and Competition in the
Economy (4 marks)
Transport plays a critical role in the economy
by facilitating the movement of goods, services,
and people, which is essential for economic
growth and development. It connects producers
to consumers, enables trade, and supports
supply chains, ensuring that resources are
allocated efficiently. Transport also reduces the
cost of production and distribution, making
goods and services more affordable and
