Thursday, February 22, 2007

Unit 2: Demerit goods and government action: Junk food

Read the BBC article

http://news.bbc.co.uk/1/hi/health/6385345.stm

a) Why can junk food be classed as a demerit good?
b) What action does the government propose?
c) Why has it taken this action?
d) What alternative courses of action could the government have taken?
e) What are the arguments against having this ban?

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