Sunday, April 13, 2008

Unit 2: Information failure: How much wine do you drink?

This BBC article and asociated clip shows how consumers often have an inaccurate idea of how much alcohol they are consuming due to different size measures in different bars

http://news.bbc.co.uk/1/hi/health/7343737.stm
http://news.bbc.co.uk/1/hi/health/7343932.stm

a) How does the free market fail with wine consumption according to the clip/article?
b) In what other way does the market fail in the longer term?
c) What actions could the government take to reduce the market failures

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