1. A recent Australian government-commissioned health report shows that tooth decay among children and low income earners has risen by 10% since 2000. Should the government subsidise dental care for children and low income earners? Critically discuss. Use appropriate economic tools, including diagrams, studied in this unit to illustrate your arguments. 2. In 2010, the Australian government imposed a tax on Alcopops to reduce teenage binge drinking and alcohol-related harms and hospitalization, and also to raise tax revenue. However, by the end of the financial year no reductions in teenage binge drinking and alcohol-related harm were recorded and, moreover, the revenue raised from the tax was 6% less than predicted. a. As an economist, are you surprised about the outcome of the government’s tax policy? Critically discuss. Use the demand and supply model and other appropriate microeconomic tools you have learned in this unit to illustrate your argument. b. Who bore a greater burden of the tax, the buyers or sellers of Alcopops? Was the outcome of the tax efficient? c. What other policy could the government implement to reduce teenage binge drinking and alcohol-related harm and hospitalization? Explain.