A Level Economics (9708)•9708/13/M/J/20

Explanation
Minimum Pricing Policy Undermined by Ineffective Deterrence and Misinformation
Steps:
- Minimum unit pricing raises alcohol costs to curb excessive consumption and health harms, especially among heavy drinkers.
- Failure occurs if pricing fails to reduce affordability or if complementary actions encourage consumption.
- Assess each option: High prices deter buying but pair with supportive info; low prices weaken deterrence, worsened by misleading claims.
- Option C combines insufficient price hike with overstated alcohol benefits, directly countering harm reduction.
Why C is correct:
- Low minimum price fails to significantly increase costs (per elasticity of demand for alcohol), preserving high consumption; overstating health benefits violates public health principles by reducing perceived risks and encouraging intake.
Why the others are wrong:
- A: High price deters consumption; effective information reinforces harm awareness, supporting policy success.
- B: High price reduces affordability; info on health effects educates against drinking, aiding reduction.
- D: Low price limits impact, but stricter enforcement curbs illegal sales and underage access, partially mitigating harms.
Final answer: C
Topic: Government policies to achieve efficient resource allocation and correct market failure
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