Monday, October 22, 2007

Unit 2: Market failure: Obesity

The following BBC article about weighing schoolchildren and the clip on free school meals in Scotland show the government response to the free market failing due to childhood obesity

http://news.bbc.co.uk/1/hi/uk/7055735.stm
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7050000/newsid_7055700?redirect=7055785.stm&news=1&nbwm=1&bbwm=1&bbram=1&nbram=1&asb=1 >

a) Why, in economic terms (ie in terms of costs and benefits) does the government worry if children become osese?
b) What form of intervention do these 2 schemes represent?
c) Discuss the extent to which either scheme is likely to be successful in reducing the market failure

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