Sunday, October 12, 2008

Unit 1: Legislation to reduce market failure: Cigarette smoking

The BBC reports a bus driver being fined for smoking on his bus

http://news.bbc.co.uk/1/hi/scotland/tayside_and_central/7663547.stm

a) What is the economic argument for banning smoking in public places?
b) To what extent do you think a £50 fine for being caught will reduce the market failure?

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