Assessment Criteria: The essay type questions will have two or three specific questions. They…

Assessment Criteria: The essay type questions will have two or three specific questions. They…

Assessment Criteria:
The essay type questions will have two or three specific questions. They will ask for your opinion and if you do not provide that you loose marks. Your assessment will be done on the basis of how you have answered the specific questions and the data used to support your arguments. It is essential that you use data where possible to back up your statements. For example, do not say ‘the number of aged people in Australia is increasing’. You need to be specific – e.g. ‘by the year 2030 it is estimated that X% of the Australian population will be over 65 years of age’. In some scenarios there is no right or wrong response and whatever the argument, it has to be backed up by evidence, concept or references. Do not just drop references in at end of sentences or paragraphs – integrate author and year or report title and year into sentences.

Q1.
i) In England, the tax on soft drinks was recently introduced. Australians buy 1.28 billion litres of sugar-sweetened drinks per annum (2012 figures). Currently, the average price of these drinks is $1.6/litre. Assuming a sales tax (hypothetical scenario) of 25% on soft drinks the price will be increased to $2/litre. The price elasticity of demand for soft drinks is -0.85.

How will the increase in the price of soft drinks affect the demand for soft drinks? (4 marks)

How much additional revenue will be raised by this tax? (1 mark)

England wants to invest such revenue in their school sports program.Do you agree this is a right strategy to reduce consumption of soft drinks and correct use of raised revenue? (up to 500 words, 10 marks)

ii) The private competitive market is used to finance and provide most goods and services in Australia. Health care is an exception to this.Why should health care be an exception? Explain your answer. (up to 500 words, 10 marks)

Assessment Criteria: The essay type questions will have two or three specific questions. They…

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