Presentation:
Assignments should be typed, using 10 - 12 sized font and 1.5 - 2 line spacing. Graphs and diagrams can be hand drawn and scanned in, but must be clearly drawn and clearly labelled.
Read the news article Dairy farmers are being ‘milked dry', but let's remember the real cost of milk (theconversation.com, 25/05/16) attached, about the animal welfare and environmental concerns associated with dairy farming.
Then use economic analysis to answer the following questions. In your answers, ensure that you use relevant economic theories, concepts and diagrams covered in this course. Note that general layman or journalistic discussions do not constitute sufficient economic analysis.
Question 1
The article calls for public policy initiatives to address animal welfare and environmental concerns associated with dairy farming. With reference to economic concepts covered in this course, explain why the government might want to intervene in the dairy market.
Question 2
A tax on dairy products is one public policy initiative the government might consider. Perform appropriate economic analysis to explain how a tax could be used to address the animal welfare and environmental concerns raised in the article. Discuss the pros and cons of using such a tax as a policy initiative.
Question 3
What other public policy initiatives can the government employ to address these concerns? Discuss the pros and cons of these.
Question 4
What can we as private individuals do to address these concerns, in the absence of government intervention? Are such private solutions likely to be effective?
Attachment:- Assignment.pdf