Evaluate the extent to which an increase in tax on gambling is the most effective method of reducing the market failure associated with excessive gambling in the UK.

The answer should;

demonstrate clear knowledge and understanding of market failure, negative externalities and government intervention.

clearly apply your knowledge to issues surrounding the gambling industry in the UK. You may wish to consider the current trends in the industry and the impact that gambling has on different economic agents.

provide relevant and precise economic analysis of the strengths and weaknesses of government intervention in the gambling industry. You may wish to consider the rationale for government intervention and the different ways in which governments might intervene.