A minimum price for alcohol means that alcoholic drink cannot be sold below a certain price. It is aimed at preventing the sale of very cheap alcohol by supermarkets. The hope is that a higher price will discourage binge drinking, improve health, and make people pay a price closer to the true social cost of …
Definition – An external benefit occurs when producing or consuming a good causes a benefit to a third party. The existence of external benefits (positive externalities) means that social benefit will be greater than private benefit. Example of external benefit In this example, of cycling to work, there is Private benefit We save on a …
Readers Question: Could you please explain how positive externality (external benefit) lead to market failure in property industry? A positive externality occurs when a third party benefits from the production or consumption of a good. In many cases, building the right kind of housing can have benefits to the rest of society. Therefore, the social …
Readers Question: Is it possible to construct the economic system so that does not rely on expanded growth which as we all know, is damaging the environment? causing pollution e.t.c. Could we have a society without economic growth? or as economists might prefer to answer – Can we have environmentally sustainable economic growth? To promote …
Readers Question: Does government increases or decrease economic efficiency. Kindly explain as I have tried to look for the reasons. This is an open-ended question, which raises many different issues. To some, on the political right, it is a simple matter of governments bad, markets good. Others are apt to see the government as a …
October 2015 will see England introduce a charge of 5p for plastic bags. Early evidence from Scotland suggests that a tax on plastic bags can lead to a significant fall in demand. Supermarkets in Scotland reported an 80% fall in use of plastic bags a month after the charge was introduced. (Times). A study in …