itv: Jersey to introduce ‘standardised’ tobacco packaging
Article published: 30 Jun, 2021
IB Economics syllabus: Microeconomics (market failure, demerit goods, government intervention)
Tobacco products on Jersey will have plain packaging so that these demerit products have less appeal to consumers. This is one of multiple measures (including taxation) to try to cut smoking in the country. This is because of all the negative externalities (external costs) that are generated by “consuming” tobacco, that is when people smoke. Make sure you explain the true external costs associated with smoking and please don’t mix them up with internal costs (such as when the smoker incurs costs due to smoking): externalities are burdening third parties, who are not producing or consuming the products. Also, for the key concept, government intervention, efficiency, and even economic well-being can be used effectively for this IB Economics commentary.
Source of image: TV Channel TV
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