Word count:

1,000 words

Note: the standard allowance is an excess of 10% of the word count; i.e. you may go over the above-stated word count by 100 words. Any excess beyond this point will be penalised. Going under the word count is not penalised as such, but you will likely find that you are unable to adequately explain the assignment with too few words. References (including in-text citations and the at-end reference list are not counted in the word-count).


Both, the Labour-led government and the opposition National Party have recently announced they plan to charge returning Kiwis for their stay in managed isolation.

On July 29, 2020, Megan Woods, the minister in charge of managed isolation facilities, announced new legislation that would allow the government to charge some people arriving in New Zealand. Woods proposes to levy a fee of $3,100 for the first adult in a room, $950 for every additional adult, and $475 every additional child. She puts forward only to charge temporary entrants and returnees who left after the legislation came into force.[1]

Woods says, “The entire focus of this policy is making sure that we get a balance, that we recognise New Zealanders do have a right to return home but that some travel might be considered discretionary – when that’s the case, people should pay.”

The opposition National Party would charge anyone returning to New Zealand for the costs of quarantine, whereas government’s New Zealand First declares they would vote for the measure but prefer to see a more comprehensive plan that charges all returnees.[2]

[1] https://www.rnz.co.nz/news/political/422283/parties-divided-over-managed-isolation-fee-legislation (Links to an external site.)

[2] See above.


Read the article “Parties divided over managed isolation fee legislation (Links to an external site.)”.

Using what you learned about private and social costs as well as private and social benefits in private decisions-making, explain why managed isolation has been imposed on cross-border travellers entering into New Zealand. Use a diagram of the market for international air travel to illustrate your point.

Using what you learned about private and social costs as well as private and social benefits in private decisions-making, explain the economic consequences of not charging for managed isolation upon entry.

Given what you understand about the price elasticity of demand and supply, explain how the proposed managed isolation fee legislation will affect travel decisions of New Zealanders and NZ permanent residents and how it will affect the airlines. Use suitable diagrams to illustrate your answer.

Given what you know about the policy, what will be its implication for fairness in New Zealand society?

Based on your discussion, do you think the government’s plans will be beneficial for society? In what way would the opposition’s plans be better? In what way would it be worse?

Note: This essay assignment does not require a standard structure of introduction, body, and conclusion; however, please read the marking scheme below, because other aspects of formal essay writing, such as paragraphing and logical sequencing of arguments and references are required as part of this assignment.

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