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UK Government and Measures to Reduce the Alcohol Consume - Essay Example

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The article, UK Government and Measures to Reduce the Alcohol Consume, implies that a minimum price for alcohol is a potential solution to tackling the perceived problem of excessive alcohol consumption. Excessive alcohol consumption has been viewed by many people in the UK as a big social problem. …
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UK Government and Measures to Reduce the Alcohol Consume
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UK Government and Measures to Reduce the Alcohol Consume

Download file to see previous pages... The article observes that none of the low-priced alcohol brands would have increased their prices within the new legislations.  Many of these products are on offer on major supermarkets such as Tesco which has such offers as 24 cans of Fosters that goes for a mere 10 pounds or even 3 fifteen packs of Strongbow cider being sold at 20 pounds. The minimum pricing policy is accompanied by VAT additions which the government hopes will help curb the norm of excessive drinking in UK.From this study it is clear that many see that the government efforts at setting minimum prices for alcoholic products will only solve half of the problem because there are many alcohol companies which have the capacity to produce alcoholic beverages at the set price and still rake in millions in profits. All that the legislation is doing to the market is removing any form of competition for the established manufacturers and distributors. Setting minimum prices will not effectively stop people from buying and sometimes, overindulging in alcohol. In the mixed economy, resources are owned by both the government on behalf of the public, and the private sector.  It is the public sector which intervenes According to economics, the concept of scarcity implies that resources are scarce or limited. The resources that are available are not enough to satisfy the needs of everyone concerned. For instance, if someone’s income is limited, it means that he cannot buy everything that he wants....
All that the legislation is doing to the market is removing any form of competition for the established manufacturers and distributors. Setting minimum prices will not effectively stop people from buying and sometimes, overindulging in alcohol.  2. Explain why, in a mixed economy, the concepts of scarcity and opportunity cost are important for governments. Illustrate your answer with examples. Also explain reasons why governments tax goods like alcohol, cigarettes and petrol. Use economic concepts in your answer. In the mixed economy, resources are owned by both the government on behalf of the public, and the private sector.  It is the public sector which intervenes According to economics, the concept of scarcity implies that resources are scarce or limited. The resources that are available are not enough to satisfy the needs of everyone concerned. For instance, if someone’s income is limited, it means that he cannot buy everything that he wants. Opportunity cost on the other hand is a measure of the cost of a certain choice, or what is refereed in economics to as the next best alternative forgone. For a person whose income is limited, he has to choose between different alternatives so that he can make good use of his limited income (Ward and Forker, 1993). In a mixed economy, opportunity cost is important for governments as it enables them to make strategic decision to control the market in a way that is likely to be more beneficial than the other. The concept of scarcity enables the government to plan and deliver its resources in the way it sees fit in order to meet as many of the market demands as possible. In the mixed ...Download file to see next pagesRead More
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