Monetary Policy

Assignment One Jamile Brown Dr. Lloyd Amaghionyeodiwe Principles of Economics Strayer University amount 2012 Suggest how an economic expert would ascend the occupation of alcoholic drinkic drink ab wont. Provide two (2) possible solutions to this problem. entangle the quartette (4) elements of the economic way of thinking in your analysis. An economist would custom the four elements of the economic way of thinking work on assumptions, Ceteris Parabis, thinking at the margin, and incentives to find solutions to the problem of alcohol ab use of goods and services. Economists use assumptions about a problem to make it more intelligible and to isolate the most important shiftings associated with the problem. Ceteris parabis is a Latin river basin meaning, all things being equal. An economist uses this to rule out some(prenominal) early(a) variables that may be affecting the variable chthonic study. thinking at the margin means that the researcher would regulate if the benefits of the achieve would outweigh the marginal be. Incentives increase or diminish the likeliness of an entities response to an action. According to the Centers for Disease Control in 2011, excessive alcohol consumption costs $223.5 billion all(prenominal) year, mostly receivable to lost workplace productivity and change magnitude wellness c be costs (Kliff, 2012).

Two possible solutions to the problem of alcohol abuse are to set increased costs for the determine of alcohol and the other is to prevent or inflict the deal of alcohol to minors. The higher price for alcohol would fun ction as an incentive to individuals to buy ! less alcohol. Stiffer penalties and fines for those caught selling alcohol to or for minors would also act as an incentive. In the jump solution, the assumption is that the price of alcohol is the main variable on a lower floor consideration and that all other variables, for example, economic emplacement of the purchasers are equal. In the second option, the age of alcohol consumer is the particular concern. minify alcohol consumption, less health concerns due to excessive alcohol...If you pauperization to get a full essay, order it on our website: BestEssayCheap.com

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