ECON200: Policy Frameworks and Markets- Economics Assignment

Internal Code: MAS1312

Economics Assignment:

Purpose: To analyse the theory in terms of the micro environment Background: The link between the consumption of sugar, and diabetes, heart disease, stroke and obesity has been asserted. The concern about the increasing incidence of obesity and disease in many countries has sparked debate about the merit of introducing an explicit sugar tax on either drink or food and drink which contain sugar. Your Task: Your essay requires you to discuss the likely economic consequences and effectiveness of a sugar tax at reducing the consumption of high-sugar drink and food. Some Hints: 1.What is the economic rationale for introducing a tax on drink and food containing sugar? 2.What does economic teaching suggest are the likely chances of a sugar tax being effective in reducing the consumption of these types of drink and food? 3.What may governments do with the revenue raised by this tax in order to address the problem of obesity and disease? 4.Is it ethical of governments to try to change our drinking and eating habits? 5.Is it ethical of government to try to manage its financial obligations in the area of health expenditure by influencing our behaviours? 5.Taxes on cigarettes, on alcohol, on petrol, on pollution and the carbon tax in Australia have all been levied, at least in part, in response to concerns about health of individuals and/or the environment. 6.The experience of these taxes may or may not assist your assessment of a sugar tax as a public policy option, however these taxes are NOT the subject matter of this essay.