Monday, March 05, 2007

Unit 2: Government information to overcome the problem of de-merit goods

This BBC clip explains the latest government public information campaign on passive smoking
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6410000/newsid_6414400?redirect=6414479.stm&news=1&bbwm=1&bbram=1&nbwm=1&nbram=1 >

a) What aspect of market failure is the government trying to combat?
b) Draw a diagram to show the effect if this campaign is successful
c) To what extent do you believe the campaign will be successful?

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