A-Level Economics Model Answer
Discuss the policy options governments have at their disposal to try and increase the consumption of healthy foods. (25 marks)
“THE NHS could collapse under the strain of Britain’s weight problem, experts have warned, as research shows that 13 million adults are now classed as obese.
A new report warns of a doubling in obesity levels in two decades, with record numbers being treated for Type 2 diabetes.”
Discuss the policy options governments have at their disposal to try and increase the consumption of healthy foods. (25 marks)
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FREE Model Answer Guide
Background to the problem
Define market failure
What is the market failure in the question? (Quote using the extract provided)
What is a demerit good?
What’s the link between junk foods and demerit goods?
Why is junk food also a case of information failure?
How does junk food cause the free market to fail?
policies to increase consumption of healthy food
Policy 1: Providing Better Information About Food (Marketing Campaigns)
How could the government provide better information to consumers?
Example: How does the traffic light labelling system make it easier for people to make better choices? [https://www.food.gov.uk/safety-hygiene/check-the-label]
Why is the policy effective/ beneficial to society?
How long would this policy take to come into effect?
Would a government marketing campaign incur significant opportunity costs?
Is the policy effective enough to increase healthy food consumption/prevent rising obesity?
Why might the policy fail?
Policy 2: Imposing Stricter Marketing Regulations (Deglamourising Unhealthy Foods)
How could the government impose such regulations to deglamourise unhealthy foods?
Example: Ronald McDonald (McDonald’s) or Santa Claus (Coca Cola)
Why is the policy effective/ beneficial to society?
How long would this policy take to come into effect?
Would this incur significant opportunity costs?
Is the policy effective enough to increase healthy food consumption/prevent rising obesity?
Why might the policy fail?
Policy 3: Better Educating Children within Schools (Serving Healthier Food or Better Education)
How could the government promote healthy-eating within schools?
Example: Jamie Oliver campaign, Milk in Schools Scheme (1934-45), reducing number of vending machines
Why is the policy effective/ beneficial to society?
How long would this policy take to come into effect?
Would this incur significant opportunity costs?
Is the policy effective enough to increase healthy food consumption/prevent rising obesity?
Why might the policy fail?
Policy 4: Minimum Pricing Scheme on Demerit Goods
How would the apply a minimum price on demerit goods?
Example: Minimum pricing on alcohol
Can you illustrate this policy using a diagram?
Why is the policy effective/ beneficial to society?
How long would this policy take to come into effect?
Would a government marketing campaign incur significant opportunity costs?
Is the policy effective enough to increase healthy food consumption/prevent rising obesity?
Why might the policy fail?
Conclusion
What are your overall thoughts?
Does any policy seem to work best?
Could more than one policy be used e.g. one in the short term and another long term?
Reading Material
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