sugar tax

Question 1

what are three ways the government might intervene in the market

Answer 1

three ways the government way intervene in the market are: to stabilise the economy, to reallocate resources and to redistribute income.

Question 2

why does the government need to intervene when products become undesirable

Answer 2

the government needs to intervene on products that are socially undesirable because they do not want these goods and services to be produced. by putting the price up less people will buy these things or they may try reallocating resources away from the production of these goods and services.

Question 3

excise tax

Answer 3

an excise tax is an indirect tax that is paid to the government usually by the producer but is passed onto the consumer as part of the price of a good or survice.

Question 4

impact of an excise tax

Answer 4

the impact of a excise tax will make the price go up and therefore demand for the product will decrease.

Question 5

benefits of the sugar tax

Answer 5

raise more than $500 million a year, that money could go to health care. prevent many cases of type 2 diabetes. lower the rate of obesity, type 2 diabetes and dental issues. increase revenue for the federal government.

Question 6

costs of the sugar tax

Answer 6

increase in unemployment, budget black holes with the government, place strain on low income households. decrease in demand and therefore a decrease in production. beverage and sugarcane companies will suffer.

Question 7

alternatives to the sugar tax

Answer 7

spread awareness and advertise more, the impacts of sugar on people health. put the amount of sugar clearly labelled on the front of products.

Question 8

law of unintended consequences

Answer 8

unintended consequences ae outcomes that were not the ones foreseen and intended by an action or decision. these outcomes may be positive or negative

Question 9

unintended consequences of the sugar tax

Answer 9

people may stockpile on sugary drinks or people may look to cheaper but less safe options such as alcohol, it also may lead more people to steal.

Question 10

evaluate intro

Answer 10

issue. australia should be the next country to introduce the sugar tax. sugar causes many health issues and sugary drinks are a big cause of it.