evaluation

Question 1

skills

Answer 1

• challenging assumptions
  realism, relevance e.g. perfect info, rational behaviour
• consider multiple perspectives- e.g. winners and losers
• elasticity- price elasticity of demand and supply

time frame - short run v Long run- does the police have diff outcomes SR/LR

policy combinations- better than one alone- mic policies

risks of government failure- deepen existing MF, unintended consequences, info gaps, administrative costs, reg capture

LT consequences not intervening worse then intervention

trade off - equity and efficiency

Question 2

rising cost housing

Answer 2

Londons mayor, calls for rent controls and caps in priv secor- av rent reached 2,633 per month 2025 10.5% increase
nearly 40% incomes go on rent in London

Question 3

2 policies other than rent controls that might improve housing affordability in UK

Answer 3

• subsidising housing development in London

rising minimum wage

changing planning permissions, allow for building on greenbelt or brown belt land to increase supply

help to buy schemes

tax on second home ownership

increasing housing supply- planning reform, make easier and faster to build new homes especially areas high demand. require developers to include a fixed %of affordable or spill housing in new developments

tax reforms on empty homes and second homes- increase council tax or levy additional taxes on vacant proprties and second homes, free up underused housing stock and reduce speculative ownership

Question 4

sugar tax

Answer 4

UK soft drink industry levy- 2018

by 2024 sugar consumption from soft drinks fell by 35% but obesity rates have continued to rise patricianly around children in low income areas

sugar tax raised 1.1 billion between 2018and 2023

Question 5

assumptions that underpin the theory behind the sugar tax and which can be challenged

Answer 5

• relatively inelastic PED- in reality especially Low income groups and habitual
• may switch unhealthy substitutes- sugary snacks, doesn’t consider cross elasticity
• assumes perfect info about every product in the market on sugar content
• assumes sugar is main cause of obesity
• assumes soft drinks are the worst/ most consumed sugary drink
• assumes rational behavioipur
• assumes reducing sugar leads to directly lore obesity, obesity is multi- causal , calorie intake, physcial acyivity0 substitute effects could consume more calories other sources

Question 6

scottland minimum pricing policy

Answer 6

minimum unit price 50p per unit of alcohol in 2018

2024 13& reduction alcohol related hospital admissions, decreased alcohol consumption,ption heavy drinkers

increased to 65p

Question 7

perspectives on the impact of this police from the point of view of different stakeholders

Answer 7

• regressive low income and heavy drinkers, heavy drinkers may cut spending elsewhere, food and heating
• minimum price doesn’t raise revenue for government, missed opportunity to hypothecate- NHS, treating alcoholics
• reduction in alcohol relayed harm eases strain on emergency services - minimising external costs of alcohol misuse- NHS burden, crime, lost labour productivity

Question 8

government has reintroduced grants for EV’S

Answer 8

reintroduced £3000 purchase grants for EV’s under £40,000 to accelerate the shift away from petrol arms

2024- EV’s made up 23% of new car sales in U, but costs remain a major barrier for many potential buyers

Question 9

extent to which demand side policy such as £3000 grant people buying EV’s likely to be effective

Answer 9

• doesn’t consider running costs, install an EV at home or costs e.g. petrol station
• not exact substitutes
• inherently regressive - only wealthy consumers can afford to spend e.g. £37000 on a vehicle

-better spent elsewhere such as renewable energy sources

• elasticity of supply and demand- battery shortages, manufacturing capacity, limit policies effectiveness even if demand ruses

need for complementary stratiegies, public charging infastrucutre investment, public charging infrastructure