Sunday, February 24, 2008

Unit 2: Alcohol consumption; Market failure through negative externalities and possible solutions

From the tutor2u blog comes this great summary of the econ omic consequences of alcohol consumption

http://www.tutor2u.net/blog/index.php/economics/binge-drinking-taxes/#When:14:21:01Z

a) List the 3 negative externalities identified from excesive alcohol consumption
b) Select 2 of the possible solutions suggested and discuss whether or not they would be more successful in decreasing the negative externalities associated with alcohol consumption than would be an increase in tax on alcohol

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