Unit 1: Information Failure

Health campaigns such as these here are attempts to correct market failure by raising consumers awareness about the negative externalities associated with smoking. In other words they aim to correct information failure.

Do you think that these clips actually work?

What is the opportunity cost of videos such as these?

What would be a more effective method?

Here are some examples of policies aimed at trying to reduce the negative externalities caused by eating junk food. 

This video clip here has found research that says that educating students at schools about the dangers of drugs would actually encourage students to take drugs!!