Wednesday, April 16, 2008

Unit 2: Information failure: Calorie counts on restaurant menus

Authorities in New York have put forward plans requiring restaurant chains to declare the calories of every item on their menus according to this BBC clip

http://news.bbc.co.uk/player/nol/newsid_7340000/newsid_7347700/7347728.stm?bw=bb&mp=wm&asb=1&news=1&bbcws=1

a) What sort of action to correct market failure are the authorities taking?
b) What is the market failure they are tring to correct?
c) To what extent do you believe the action will succeed in reducing the market failure?

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