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Economics Market Failure

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by

Siena Hutchinson

on 15 October 2012

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Transcript of Economics Market Failure

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli ECONOMICS
MARKET FAILURE
JUNK FOOD consider this video... Lets outline the problem... SO...

fast food companies want to sell as much of their product as possible
fast food is cheaper than healthy food
people eat junkfood to save money
tax should be imposed Consider chocolate as an example Chocolate: negative externality of consumption - Health minister Anne Milton said: "We have no current plans to impose a 'fat tax', but we are working with food companies to reduce fat, sugar and salt and ensure healthier options are available. Government intevention: What is being done in UK - adding 17.5% to the cost of unhealthy food products in the UK could lead to 2,700 fewer deaths from heart disease. How would tax affect the economy of junk food? Consumption of unhealthy foods is having negative externalities on UK's economy --> market failure Conclusion - Obesity + increased risk of heart diseases + types of cancer
*country's reputation and general well being of the nation
*healthcare costs
- Children ESPECIALLY vulnerable
*education
*future generations
*birth rates in the long run Negative externalities caused by unhealthy food - National standards for school meals
(regulations on how healthy school food should be)
Full transcript