Outcome 3 Flashcards
What is a government policy?
A rule or principle guiding decisions to achieve positive outcomes that enhance the community or country.
How do policies prevent market failure?
Policies address issues like negative externalities, overconsumption of demerit goods, and insufficient provision of merit goods.
What is welfare policy?
Welfare policy ensures human needs for security, health, and education are met, while creating a competitive, educated workforce.
What is an example of welfare policy in Scotland?
Alcohol and drugs policy, including minimum unit pricing and addiction treatment strategies.
What is environmental policy?
Policies addressing sustainability, pollution, conservation, and climate change.
What is an example of environmental policy in Scotland?
Climate Change policies such as low carbon living and gas emission reductions.
What is competition policy?
Policies to promote competition, improve market efficiency, and protect consumer interests.
What are the four pillars of competition policy in the UK?
1) Antitrust & cartels, 2) Market liberalization, 3) State aid control, 4) Merger control.
What does antitrust policy aim to prevent?
Agreements like price-fixing and abuse of dominant market positions to restrict competition.
What is market liberalization?
Introducing competition in monopolistic sectors such as energy and telecommunications.
What is the role of the Competition and Markets Authority (CMA)?
To enforce competition laws, prevent monopolies, and penalize anti-competitive behaviors.
What is the impact of minimum unit pricing for alcohol in Scotland?
It reduces alcohol abuse by setting a floor price, resulting in fewer hospital admissions and deaths.
Why is alcohol classified as a demerit good?
Because it has negative effects like health issues, violence, and property damage, burdening the NHS.
What is the goal of the Alcohol (Minimum Pricing) (Scotland) Act 2012?
To prevent alcohol sales below 50p per unit, discouraging excessive consumption.
What are negative externalities associated with alcohol misuse?
Violence, property damage, and increased healthcare strain.
