Wednesday, October 31, 2007

Unit 2: Pay as you throw

This BBC article oulines the government plans to introduce trials of taxation on rubbish

http://news.bbc.co.uk/1/hi/uk_politics/7067971.stm

a) How is rubbish disposal an example of market failure?
b) Using a diagram, expain how will this plan reduce the market failure

The London mayor Ken Livingstone is scathing in his critisism of the plan

http://news.bbc.co.uk/1/hi/education/7080699.stm

c) Why does he not think the plan will work

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