For Economics Students

It's ALWAYS good to read ahead, to prepare.

Remember that often Economics is all around you, you just have to look...

Remember that we're doing market failure and so you should be reading as much as you can - and looking at presentations.

So let's consider several topics you are all interested in - such obesity and smoking...

In your blogs I'd like to see a summary of the article and then a 'market failure diagram' showing why smoking and/or obesity is a market failure.

This will require some thought on your part as well as reading etc.

Often with questions about smoking you have to consider economic arguments for and against the banning of smoking. Again it's a good idea to have current examples.

So, in your second blog article I'd like you to consider two questions:

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?

The third blog article is to do with China. Home territory for some of you!

Look at the negative externalities in China!

In your blog:

a) Explain why the people falling sick is an example of a negative externality
b) Suggest 2 courses of action the government could take to try and reduce the possibility of such an incident happening again

Now we move onto BINGE DRINKING!

This is a topic that has plenty of market failures. Have a look at this presentation.
In your blog deal with these questions:

a) How does binge drinking represent a market failure?
b) What are the new proposals?
c) To what extent do you believe any one, or the combined proposals, are likely to be successful?

We conclude with a return to smoking. There are different types of market failure. Have a look at this BBC report about rising sales of electronic cigarettes

In your blog consider:

a) What is the information failure in the electronic cigarette market?
b) Does this represent asymmetric information in the market?
c) What is the outcome in the free market of this informatio failure?
d) What actions could government take to reduce/eliminate the market failure?