Government interventions in markets

Government interventions in markets

For this assignment, are required to write an essay answering one of these questions:

Is Minimum unit pricing an efficient and effective government intervention method in the alcoholic beverages market?

OR

Is sugar tax an effective way of reducing obesity in the UK? Discuss the effectiveness of the sugar tax policy in reducing the consumption of sugary drinks in the UK.

The aim of this essay is to ascertain the effectiveness and efficiency of the role of government in solving certain economic problems.

Things to consider: Alcoholic beverages market

• Why would the government intervene in this market?
• What problems are created for the society and individuals as a result of the existence of this market? (it is good to use evidence and economic theory to support your points here)
• How does the minimum unit pricing method work in this market to reduce these problems?
• What are the benefits of minimum unit pricing in this market? (use economic theory and evidence here)
• What are the limitations of minimum unit pricing in this market? (use economic theory and evidence here)
• Overall, do you think government should intervene in this market using minimum unit pricing? Why or why not?

Things to consider: Soft Drinks Market – Sugary Drinks Market

• What is the sugar tax policy?
• Why is a tax levied on drinks containing sugar? What problems are associated with the consumption of sugar? (it is good to provide evidence to support your points here)
• How does this tax work in the sugary drinks market? Illustrate the effect of this policy in the market (use economic theory here).
• What are the benefits of the sugar tax? Use economic theory and evidence here.
• What are limitations of the sugar tax? Use economic theory and evidence here.
• Overall, do you think this policy is effective in reducing the sugary drinks?

Structure:

There should be 4 sections in your essay. Details regarding each section are outlined below.

1. Introduction (Approximately 100-150 words)

Suggested content:

• Interesting facts about the relevant market
• Definition of government intervention
• Brief explanation of the reasons for government intervention in the market
• Purpose of the essay
• Statement about the structure of the essay.

2. Background (Approximately 200-250 words)

Content:

• Detailed discussion of the reasons for government intervention in the relevant market.

3. Analysis and Evaluation (Approximately 600-700 words)

Content:

• Clear explanations of how the method/policy works in the relevant market
• Clear explanations of the benefits and limitations of the method/policy using economic theory and supported with evidence
• Evaluation of the method/policy – an overall judgement (evaluation) whether the intervention method is a good idea or not.

4. Conclusion (Approximately 80-100 words)

Content:

• Summary of the key points of your analysis.

Note: You should not introduce new ideas in the conclusion

Theory and/or task resources required for the assessment:

Theory

You need to use relevant economic theory to explain the effects of government intervention methods in different markets. This means you will need to use the relevant diagrams.

The theory of elasticity covered in week 4 cycle 1 can be used to support arguments on government intervention in the alcoholic beverages market.

The theory of efficiency and government interventions in market covered in week 5 cycle 1 can be used to illustrate government intervention methods and corresponding effects in markets.

Research

You are required to conduct secondary research for this essay, finding relevant sources independently. For your chosen question, you are required to use at least SIX sources. These should be reputable sources (e.g., discussion papers, book chapters, journal articles), which have been published in English language. Good quality newspaper like the Economist, Guardian may also be helpful.

Your essay should present an in-depth discussion and economic analysis, you must use diagrams to support your explanations of economic theory.

Referencing style:

You are required to use a minimum of 6 sources. You must include a reference list as part of your report. The GIC citation and referencing guide will guide you regarding the format of your citations and references.

Expected word count:

The word count for this assignment is 1200 words, excluding diagrams, headings and the reference list. You may exceed this count by 20% or fall short of this count by 20%.

An essay submitted with a word count that is less than 960 or greater than 1440 will receive a penalty.

The following learning outcomes are assessed in this task:

Submission Requirements:

• Your font size for your assignment must be Arial 12.
• Each page of your assignment should have a header with your student ID number, module code (e.g. FC700) and the name of your class tutor. Do not write your name anywhere on the submitted document.
• All pages should be numbered.
• Include a title page consisting of the following information:
  • Module Code (e.g. FC700)
  • Class/Group: (e.g. Group A, )
  • Assignment Title: (e.g. Add in your Report Title)
  • Tutor Name: (name of tutor)
  • Student GU ID Number: (please add your GU ID number only and NOT your name)
  • Date of Submission: (date)
  • Word count