The article calls for public policy initiatives to address animal welfare and environmental
concerns associated with dairy farming in Australia. With reference to economic concepts
covered in this course, explain why the government might want to intervene in the dairy
market.
(10 marks)
Question 2
A tax on dairy products is one public policy initiative that the government might consider.
Perform appropriate economic analysis to explain how such 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.
(10 marks)
Question 3
What other public policy initiatives can the government employ to address these concerns?
Discuss the pros and cons of these.
(10 marks)
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?

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