Sunday, October 19, 2008

Unit 1: Information failure: Drinking and the risk of breast cancer

The BBC reports most women are unaware of the increased risk of breast cancer which follows excessive drinking

http://news.bbc.co.uk/1/hi/health/7675843.stm

a) Why is this an example of information failure?
b) How does the market fail?
c) What actions could the government take to reduce the market failure?
d) How successful do you think such measures would be?

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