The Government would like to improve the well-being of the population by encouraging people to adopt a healthy diet. Using your knowledge of both traditional economic theory and behavioural economics, assess alternative policies that the Government might

(Intro) Definitions of behavioural and traditional and distinctions. (PARA 1)A governmental approach would involve the use of pricing and quantities to encourage more consumption of healthier goods, they may involve a subsidy to reduce the price of healthier alternatives and therefore increase demand for them. A diagram of shifting the supply curve to the right would be apt. Limitations; lack of taste for healthier goods, lack of available funds, political pressure Alternative, fatty food tax; increase the cost of unhealthy foods again using the market mechanism through taxation; this may be hypothecated to help with a subsidy of healthier alternatives to achieve the governments aim. (PARA 2) Behavioural; achieves goals through understanding man is not rational or maximising. Explanations of some of the key ideas that are relevant, ie heuristics, anchoring, framing then assess some options. Framing, may use public awareness campaign, such as 'change for life', could use stats around how healthy people in society are.Anchoring; increase awareness over changes in prices for healthier alternatives therefore challenging existing views that they may be expensive to consume. evaluation; expensive to enact, possibly difficult to effectively alter peoples perceptions, government not an effective messenger for change to some with bias.

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