GraceDuDu
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In 2018, the UK Government imposed a new tax on sugary drinks,aimed at tackling obesity. Behavioral economists believe that taxation alone is unlikely to be very effective in reducing consumption. By 2050,obesity is predicted to affect 60% of adult men, 50% of adult women and cardiovascular disease and cancer.

Q1: Explain why, in a free market , sugary drinks may be over consumed .(15 marks)

Q2: Evaluate the view that imposing a tax is the most effective government policy for reducing the market failures arising from overconsumption of unhealthy food and drink.(25 marks)
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GraceDuDu
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In 2018, the UK Government imposed a new tax on sugary drinks,aimed at tackling obesity. Behavioral economists believe that taxation alone is unlikely to be very effective in reducing consumption. By 2050,obesity is predicted to affect 60% of adult men, 50% of adult women and cardiovascular disease and cancer.

Q1: Explain why, in a free market , sugary drinks may be over consumed .(15 marks)

Q2: Evaluate the view that imposing a tax is the most effective government policy for reducing the market failures arising from overconsumption of unhealthy food and drink.(25 marks)[/QUOTE]
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311211
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