Tuesday, December 07, 2010

Unit 1: Asprin; a merit good?

The latest news on the potential power of asprin from the BBC

http://www.bbc.co.uk/news/health-11933781 video
http://www.bbc.co.uk/news/health-11930988 article

a) To what extent does this this extract suggest asprin is a merit good?
b) If it is a merit good, how does the market fail?
c) What actions could the government take to reduce this market failure?
To what extent do you believe the government can reduce the market failure?

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