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A recent report to the Irish government highlighted the growing issue of alcohol abuse in Ireland - Leaving Cert Economics - Question 9 - 2013
Question 9
A recent report to the Irish government highlighted the growing issue of alcohol abuse in Ireland. (a) Outline one private cost and one social cost related to exces... show full transcript
Worked Solution & Example Answer:A recent report to the Irish government highlighted the growing issue of alcohol abuse in Ireland - Leaving Cert Economics - Question 9 - 2013
Step 1
Step 2
Social Cost:
Answer
One social cost associated with excessive alcohol consumption is increased healthcare costs. The health complications arising from alcohol abuse often lead to higher healthcare expenditures for the community and government, as more resources are needed to treat conditions related to alcoholism.
Step 3
Advantage:
Answer
An advantage of the government imposing a minimum price on alcohol products is the potential reduction in alcohol consumption. By increasing the prices of alcoholic beverages, the government can discourage excessive drinking, especially among younger individuals, leading to numerous public health benefits.
Step 4
Disadvantage:
Answer
A disadvantage of this policy is the risk of increased competition in the black market. Higher prices for alcohol in legal stores may drive consumers to seek cheaper alternatives, leading to illegal sales and associated risks such as unregulated product quality and safety concerns.