Exam Question Practice: Market Failure

After watching the video below answer the following questions:

1. Define opportunity cost (2)
2. Identify and explain one example of opportunit cost from the video (3)
3. Discuss the economic arguments for and against a ban on the sale and consumption of alcohol (7)
4. The government is considering raising existing indirect taxes on alcohol and/or banning alcohol advertising. Which of these two approaches do you think would be most effective and give reasons. (8)