Assignment Task
Introduction
Decision-makers in government rely on the advice of experts when formulating policy or discharging their statutory responsibilities. In this assignment you will take the role of an expert economist, employed by a government department. An expert economist’s role in the government decision-making process is two-fold:
• Analysis: Economists use their specialist knowledge and skills to analyse the likely outcomes of policy alternatives. They then evaluate these outcomes against the
government’s objectives and statutory obligations.
• Communication: Economists communicate their findings to ministers and senior public servants, who, in many instances, do not share their specialised knowledge.
This assignment will assess your aptitudes in both of these domains. You are to conduct an industry analysis based on the scenario detailed in section 2. Then use your analysis as the basis for a brief (a short report) summarising your recommendations and the associated rationale.
Your task The Minister for Public Transport has instructed you to evaluate the two proposals and recommend which of the two proposals (if any) the ministry should pursue. In your recommendation you should consider the revenue raised by each proposal, as well as the impact that each proposal will have on both consumers and the taxi industry. In particular, you are to assess the taxi companies’ claim that it is consumers who will ultimately bear the cost of any new tax. (The minister is concerned that the public will not support the new taxes if they result in significant price rises.)
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